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I think the iPhone 16e is too expensive – and as it turns out, so does nearly everybody else

I think the iPhone 16e is too expensive – and as it turns out, so does nearly everybody else

  • 22.03.2025 12:47
  • techradar.com
  • Keywords: danger, success

The iPhone 16e is widely considered too expensive, with only 10% finding it reasonably priced. Despite being positioned as a budget or mid-range option, its $599 starting price has drawn criticism, especially compared to cheaper alternatives from other brands like Samsung and Google. Over 70% of surveyed Apple users are unimpressed, citing high cost and outdated features like the single camera and notch display.

Apple Products

Estimated market influence

Context

Analysis of iPhone 16e Market Reception and Business Implications

Key Facts and Data Points

  • Pricing: The iPhone 16e costs $599 / £599 / AU$999 for the base model with 128GB storage, up from $429 / £429 / AU$719 for the third-generation iPhone SE (launched in 2022).
  • Consumer Sentiment:
    • Only 1 in 10 people think it’s reasonably priced.
    • Over 90% of consumers believe the iPhone 16e is too expensive for a "budget" or mid-range phone.
    • 72.7% of surveyed Apple users would prefer the iPhone 16e to be priced at $500 instead of its current price.
  • Feature Reception:
    • The device features the A18 chipset, 8GB RAM, and full Apple Intelligence toolkit but lacks a second camera, dissatisfying 52.6% of users.
    • 34% of users are deterred by the lack of the highest-end model features, while 16.1% are put off by the notch design.

Market Perception and Consumer Behavior

  • The iPhone 16e is positioned as a mid-range phone but faces criticism for its price point compared to competitors like the Samsung Galaxy A54 ($499 / £499 / AU$849) and Xiaomi Redmi Note 12 Pro ($459 / £449 / AU$849).
  • Consumer Perception of Value: Despite its premium features, the iPhone 16e is seen as overpriced for a mid-range device, with many preferring cheaper alternatives or flagship models.

Competitive Landscape

  • Comparison with Competitors: The iPhone 16e’s price ($599) places it significantly higher than similar devices from Samsung and Xiaomi, potentially limiting its appeal in the budget segment.
  • Apple's Pricing Strategy: The $170 / £170 / AU$280 increase over two years raises questions about Apple's ability to maintain affordability while competing with more price-competitive brands.

Strategic Considerations for Apple

  • Risk of Market Share Loss: If the iPhone 16e fails to attract budget-conscious consumers, Apple may lose ground to competitors offering better value at similar or lower prices.
  • Flagship Model Dominance: The iPhone 16 series continues to dominate the premium market, with the iPhone 16e seen as a secondary option rather than a primary choice for many.

Long-term Effects and Market Implications

  • Potential Shift in Consumer Preferences: The high price of the iPhone 16e may push budget-conscious buyers toward Android alternatives, potentially altering the competitive dynamics in the smartphone market.
  • Regulatory Considerations: While not explicitly mentioned, the pricing strategy could attract scrutiny if seen as anti-competitive or exclusionary.

Conclusion

The iPhone 16e’s high price and mixed reception highlight challenges for Apple in maintaining its dominance in the mid-range and budget segments. While it retains premium features, its positioning as a "budget" phone is increasingly questioned by consumers. Long-term success will depend on balancing affordability with innovation to retain market share against growing competition.