The iPhone 16e, priced at €699 ($599 in the U.S.), marked Apple’s first attempt in years to rebrand its mid-range offering, moving away from the SE moniker. In March 2025, it claimed the ninth spot among Europe’s best-selling smartphones, accounting for 8% of Apple’s iPhone sales in the region and 2% of the overall smartphone market. In Western Europe, it performed slightly better, reaching seventh place. Despite this, its sales trailed the iPhone SE (2022) by 17% and the iPhone SE (2020) by 20%, both of which saw stronger debuts, with the 2022 model hitting sixth place and 12% of Apple’s regional sales, and the 2020 model reaching third with 19%.
The iPhone 16e’s higher price point is a key factor. Compared to the iPhone SE (2022) at €519 ($429) and the iPhone SE (2020) at €479 ($399), the 16e’s €699 starting price has drawn criticism for being less competitive in Europe’s price-sensitive mid-tier market. Consumers are increasingly turning to refurbished or second-hand iPhones, which offer similar performance at lower costs, further challenging Apple’s strategy.
Features and Trade-Offs
The iPhone 16e brings notable upgrades over its SE predecessors, aligning it closer to Apple’s flagship iPhone 16 lineup. It features a 6.1-inch OLED display, Face ID, a USB-C port, and the powerful A18 chip with 8GB of RAM, enabling Apple Intelligence features. Its single-lens 48-megapixel camera supports 1x and 2x shots, matching the main camera of the iPhone 16, though it lacks advanced features like Focus Control or spatial video. The device also introduces Apple’s custom C1 5G modem, which performs comparably to Qualcomm’s modems but omits support for faster mmWave 5G networks.
However, compromises have sparked debate. The absence of MagSafe and Qi2 charging limits compatibility with Apple’s magnetic accessories, and its 7.5W wireless charging speed lags behind the 15W of flagship models. The single-lens camera, while capable, misses out on ultra-wide or telephoto capabilities, and the display lacks the 120Hz ProMotion of higher-end iPhones. These trade-offs, combined with a design resembling the iPhone 14 (complete with a notch rather than the Dynamic Island), have led some to question its value at $599.
Market Dynamics and Consumer Sentiment
Europe’s mid-tier smartphone market is increasingly competitive, with price-conscious consumers favoring budget-friendly options or refurbished devices. Posts on X reflect mixed sentiment, with some praising the iPhone 16e’s minimalistic design but criticizing its price and missing features like MagSafe. Others argue it appeals to buyers prioritizing Apple’s ecosystem over raw specs, particularly through carrier deals or corporate purchases. For instance, some companies are upgrading from older SE models to the 16e for its modern design and performance.
Counterpoint Research notes that while the iPhone 16e underperformed compared to SE models in Europe, its global sales show promise. In Q1 2025, it ranked sixth worldwide in March, its first full month, and contributed to Apple’s dominance of the top four spots in global smartphone sales, led by the iPhone 16. The device’s success in markets like Japan and the Middle East suggests regional variations in demand, potentially driven by its upgraded feature set over the SE.
Why It Matters
The iPhone 16e’s launch reflects Apple’s attempt to bridge the gap between its budget and cofferings, but its higher price has sparked a debate about value. While it outperforms the SE in some markets year-over-year, particularly in the U.S. where it captured 7% of iPhone sales in Q1 2025, its European struggles highlight the challenge of balancing premium features with affordability.
Apple’s decision to phase out the SE branding and align the 16e with the iPhone 16 lineup suggests a long-term strategy to streamline its portfolio. However, with no iPhone 17e rumored for 2026, the 16e’s sales performance may determine the future of Apple’s mid-range lineup. As the company prepares for WWDC 2025, where iOS 26 and other software updates will be unveiled, the iPhone 16e’s role in driving Apple Intelligence adoption could be a key factor in its long-term success.
Looking Ahead
Apple’s iPhone 16e is a bold step toward modernizing its mid-range offerings, but its higher price and selective feature set have yet to fully resonate with cost-conscious consumers. As competition from Android brands like Xiaomi and Huawei intensifies, particularly in price-sensitive markets like China, Apple may need to adjust pricing or enhance features to maintain its edge. For now, the iPhone 16e remains a compelling option for those seeking a balance of performance and affordability, but its legacy will depend on how Apple refines its approach in future iterations.