Apple’s iPhone 16e is seeing stronger early sales than its predecessor, the third-generation iPhone SE, but analysts warn it won’t be enough to reverse Apple’s sales decline in China.
According to market research firm IDC, sales of the iPhone 16e were 60% higher in its first three days compared to the iPhone SE (2022).
However, Apple’s overall sales in China are still expected to drop by 2% this year, due to stronger Android competition and government subsidies favouring local brands.
The iPhone 16e, priced at $599, replaces the $429 iPhone SE but faces hurdles in China due to its single rear camera, limited base storage, and lack of advanced AI features.
Meanwhile, the Chinese government’s $41 billion subsidy program is boosting local brands like Xiaomi and Vivo, making budget Android options even more attractive.
IDC’s Bryan Ma noted that brand perception also plays a role, as many Chinese consumers prioritise premium models over lower-priced iPhones.
Despite this, Apple is working to introduce Apple Intelligence AI features in China later this year to enhance competitiveness.
While China remains a tough market, the iPhone 16e is expected to perform better in India, which could account for up to 20% of iPhone sales in the second half of 2025.
Apple’s overall China sales fell 11% over the holiday period, contributing to its revenue slowdown.
The company still expects modest growth in the current quarter, though the iPhone 16e alone is unlikely to drive a significant turnaround.
