The iPhone 16e is gaining traction, however its actual success could also be extra about Apple’s technique than buyer demand.
Apple’s iPhone 16e accounted for 11% of US iPhone gross sales final quarter, greater than doubling the iPhone SE’s share from the identical interval in 2024. The information comes from Shopper Intelligence Analysis Companions’ June 2025 survey.
The survey marks the primary full quarter since Apple changed the iPhone SE with the iPhone 16e in February. The brand new mannequin pulled demand away from older iPhone 15 and iPhone 14 fashions, shrinking the share of legacy iPhones from 28% in 2024 to fifteen%.
The iPhone 16e’s early success might counsel Apple has lastly landed on a extra sustainable low-cost method. However its share continues to be modest.
Almost 9 in 10 consumers selected a special mannequin, and there is a case to be made that many merely did not have one other budget-friendly choice.
In contrast to the older iPhone SE, which began decrease, the iPhone 16e is dearer with fewer premium options than the usual iPhone 16. Apple has usually used older fashions for the low-end market.
Now, with legacy gadgets declining in gross sales, customers are being inspired to improve to newer, dearer fashions.
iPhone 16 household stays dominant
Many consumers nonetheless want the most recent full-featured fashions, even with the iPhone 16e providing a lower-cost entry level. The mainline iPhone 16 choices embrace the usual, Plus, Professional, and Professional Max.
These proceed to anchor Apple’s lineup and enchantment to customers who need higher cameras, bigger shows, or premium supplies. For many prospects, the tradeoff between value and options nonetheless leans towards spending extra.
The broader iPhone 16 lineup captured 74% of complete US iPhone gross sales. That is up from 66% for the iPhone 15 household in the identical quarter in 2024.
Breakdown of US iPhone gross sales by mannequin for June 2025 vs. June 2024. Picture credit score: CIRP
Each mannequin within the iPhone 16 sequence gained market share over its predecessor, aside from the iPhone 16 Plus. Analysts at CIRP speculate Apple may discontinue the Plus mannequin later in 2025 and exchange it with the iPhone 17 Air.
Apple’s transfer to retire older telephones might assist streamline software program assist and scale back fragmentation, however the advantages aren’t evenly shared. A lot of the upside goes to Apple.
With extra folks on newer gadgets, it turns into simpler for the corporate to roll out options like Apple Intelligence. These options depend upon current chips and better efficiency.
Premium gross sales nonetheless prepared the ground
Regardless of the iPhone 16e’s momentum, Apple’s top-tier fashions stay the preferred. The iPhone Professional and iPhone Professional Max proceed to develop in market share, and there is little signal that an improved entry-level telephone is consuming into premium demand.
The iPhone 16e continues to be a stripped-down gadget, even with the most recent processor. It lacks the show, digital camera, and construct high quality of dearer fashions.
That makes it an excellent match for customers who need up-to-date software program assist with out the bells and whistles. Nevertheless, it is not prone to change Apple’s general income combine.
Wanting forward, a successor within the type of an iPhone 17e might arrive in early 2026. If that occurs, Apple might push extra customers towards the most recent {hardware} cycle.
However there is a tradeoff. With fewer really inexpensive choices, Apple’s low finish is beginning to look quite a bit like its midrange.