Apple needs the iPhone 16e to be a hit
Apple's (AAPL) iPhone 16e debut was surprising for two reasons: First, the company shifted away from the “SE” branding after nearly a decade. Then it priced the budget phone higher than expected at $599 — a notable jump from the $429 iPhone SE. The iPhone 16e, which launches on February 28, is Apple's latest effort to diversify its iPhone lineup and prove the company's 18-year-old signature product can still appeal to new audiences.
- By embracing a strategy that worked for the iPhone XR seven years ago, Apple may be able to reinvigorate the budget phone segment and attract price-conscious consumers who are increasingly willing to pay more for premium features.
- Can Apple sustainably maintain its market lead without sacrificing profitability on lower-margin devices, or will the pressure to compete with rivals like Samsung and Google force the company to rethink its pricing strategy?