iPhone 16e Sales Lag Behind SE Models Despite Bestseller Status

[*~Kim~*]

Is this really a surprise? Apple launched a “budget” iPhone at $599

It’s a lesson they should have learned from the iPhone 5c, which wasn’t much cheaper than the iPhone 5s (£80 UK according to old news articles) but offered a lot less in terms of features. The materials were noticeably cheaper: there was no Touch ID, it was 32bit, there was no motion coprocessor and it lacked the camera upgrades of the 5s. It felt like people bought it mainly if they wanted an actual colour and gold wasn’t to their taste, or they couldn’t get hold of a 5s (which were in very short supply at launch.)

The low 400s starting price of the latest SE was just about acceptable to the budget market, which turned out to be as price sensitive as the budget iPad one. I’d argue they could get away with a bit more in the iPad market, since there are fewer alternatives. Like the iPad 10, the iPhone 16e isn’t a budget model, it’s a half way house - they just happened to take away the budget option in the latter case. The iPad 11 is, I assume, selling a lot better with its internal upgrades and price cut so wasn’t an inherently bad design.

 

[Jeeve Stubbs]

It’s a lesson they should have learned from the iPhone 5c, which wasn’t much cheaper than the iPhone 5s (£80 UK according to old news articles) but offered a lot less in terms of features. The materials were noticeably cheaper: there was no Touch ID, it was 32bit, there was no motion coprocessor and it lacked the camera upgrades of the 5s. It felt like people bought it mainly if they wanted an actual colour and gold wasn’t to their taste, or they couldn’t get hold of a 5s (which were in very short supply at launch.)

The low 400s starting price of the latest SE was just about acceptable to the budget market, which turned out to be as price sensitive as the budget iPad one. I’d argue they could get away with a bit more in the iPad market, since there are fewer alternatives. Like the iPad 10, the iPhone 16e isn’t a budget model, it’s a half way house - they just happened to take away the budget option in the latter case. The iPad 11 is, I assume, selling a lot better with its internal upgrades and price cut so wasn’t an inherently bad design.

The iPhone 16e is a significant improvement over the SE 3, and is about halfway between SE 3 and 16 in terms of technology and features. It's £200 cheaper than the 16, about enough money to buy an Apple Watch SE. If people bought according to their actual needs, the 16e would be the best-selling iPhone by far.

 

[turbineseaplane]

The iPhone 16e is a significant improvement over the SE 3

I would hope so -- it's far newer and the entry price jumped from $429 all the way up to $599

Had the 16e started at $499 (and inevitable discounts carried it far lower), the offering would be more compelling.

Yes, there are many differences and improvements, but the actual entry price matters a lot, as it's the entry price for the entire iPhone lineup.

 

[tomtad]

Is this really a surprise? Apple launched a “budget” iPhone at $599

Thing is while they're selling less, they're likely making more money

 

[turbineseaplane]

Thing is while they're selling less, they're likely making more money

"A now, a reading from Tim Cookians 4:8"

 

[Jeeve Stubbs]

I would hope so -- it's far newer and the entry price jumped from $429 all the way up to $599

Had the 16e started at $499 (and inevitable discounts carried it far lower), the offering would be more compelling.

Yes, there are many differences and improvements, but the actual entry price matters a lot, as it's the entry price for the entire iPhone lineup.

Accounting for inflation, $429 in 2022 is like $489 today, so a 22 % increase. I would argue that there were more differences, in technology and features, between SE 3 and 13 than between 16e and 16, so the 22 % increase is somewhat justified. To say nothing of the fact that Apple will probably absorb some of Trump's tariffs, but that's another story.

 

[turbineseaplane]

Accounting for inflation, $429 in 2022 is like $489 today, so a 22 % increase. I would argue that there were more differences, in technology and features, between SE 3 and 13 at the time than between 16e and 16 today, so the 22 % increase is somewhat justified. To say nothing of the fact that Apple will probably absorb some of Trump's tariffs, but that's another story.

I think you may have missed my main point... or I didn't articulate it well enough.
Let me try again.

I think Apple should have designed for a price point more if they needed to and hit the $499 mark.

Being at a certain level as the "cheapest iPhone" ... or "entry point" should have been more critical.

$600 is a lot.

 

[Jeeve Stubbs]

I think you may have missed my main point... or I didn't articulate it well enough.
Let me try again.

I think Apple should have designed for a price point more if they needed to and hit the $499 mark.

Being at a certain level as the "cheapest iPhone" ... or "entry point" should have been more critical.

$600 is a lot.

I understand your point, but Apple products aren't entry-level. It's like buying a Mercedes-Benz: even the least expensive one wouldn't be considered an entry-level car. If someone wants a phone below $500, they'll have to settle for a less luxurious brand.

 

[turbineseaplane]

I understand your point, but Apple products aren't entry-level. It's like buying a Mercedes-Benz: even the least expensive one wouldn't be considered an entry-level car. If someone wants a phone below $500, they'll have to settle for a less luxurious brand.

Apple is not a "luxurious brand".

The context here is that "iPhones used to start at $429"

Now they don't start until $599.

That's all needs to be known here.

 

[Jeeve Stubbs]

Apple is not a "luxurious brand".

The context here is that "iPhones used to start at $429"

Now they don't start until $599.

That's all needs to be known here.

Of course it's a luxurious brand in its industry. If it isn't, then what other brand is?

 

[turbineseaplane]

Of course it's a luxurious brand in its industry. If it isn't, then what other brand is?

This sort of stuff ... or adding on SUPER high end cases for iPhones.

https://vertu.com/

BELLPERRE LUXURY PHONES – Official Website

www.bellperre.com

Or even more locked down hyper secure stuff for super rich.


iPhones specs themselves are completely matched by a variety of Android phones.

Apple stuff is nice, but "luxury" is going too far.
It's just not the best description or one that applies particularly well in my view.

 

[Jeeve Stubbs]

This sort of stuff ... or adding on SUPER high end cases for iPhones.

https://vertu.com/

BELLPERRE LUXURY PHONES – Official Website

www.bellperre.com

Or even more locked down hyper secure stuff for super rich.


iPhones specs themselves are completely matched by a variety of Android phones.

Apple stuff is nice, but "luxury" is going too far.
It's just not the best description or one that applies particularly well in my view.

Do you consider Hermès Paris a luxury brand? I don't think they would accept associating their prestigious name with a non-luxury company.
There is no question that Rolls-Royce is a luxury car brand and that its prices are more prohibitive than Mercedes, but that doesn't mean Mercedes isn't luxury.

 

[turbineseaplane]

Do you consider Hermès Paris a luxury brand? I don't think they would accept associating their prestigious name with a non-luxury company.
There is no question that Rolls-Royce is a luxury car and that its prices are more prohibitive than Mercedes, but that doesn't mean Mercedes isn't a luxury brand.

Let's just agree to disagree and move on.
This really doesn't matter and we are littering all over the thread at this point.

My only frustration with the move from SE3 to 16e is that Apple raised the entry price for an iPhone by 20%.

 

[Jeeve Stubbs]

Let's just agree to disagree and move on.
This really doesn't matter and we are littering all over the thread at this point.

My only frustration with the move from SE3 to 16e is that Apple raised the entry price for an iPhone by 20%.

OK, fine.
I think we can also agree that Apple is not interested in the below-$500 market anymore, and you'll just have to live with it.

 

[turbineseaplane]

I think we can also agree that Apple is not interested in the below-$500 market anymore, and you'll just have to live with it.

I'm an iPhone Mini user.
Trust me, I've grown accustomed to "living with" Apple decisions.

😕