Can a phone that costs north of Rs 40,000 be called a “budget” phone? For most brands, certainly not. But for Apple? Yes, it can and that phone was the iPhone SE. However, Apple’s decision to price the iPhone 16E at approximately Rs 60,000 signals a clear shift in its strategy — moving away from the concept of ‘budget’ iPhones. At least for the time being.
While Apple never truly played in the budget segment, models like the iPhone SE — since 2016 — at least provided relatively more affordable entry points into the Apple ecosystem. The iPhone 16E, however, suggests that Apple wants the premium tag associated with its brand.
No longer an ‘affordable’ proposition
Some might argue that the iPhone has never been an affordable buy for most people. Still, the iPhone SE wore that badge of an affordable iPhone. Having said that, Apple has long been an aspirational brand in India, commanding a unique space where its products are more than just devices—they are status symbols. Like it or not but there are swathes of people who think on those lines. There in also lies the reason why this new iPhone is called the iPhone 16e and not the SE.
As good a phone the previous generation iPhone SEs were, they were labelled as “sasta” iPhones. When you are buying an iPhone then that is a rather unwanted tag and not something that raises the flaunt quotient.
That’s because the iPhone, in particular, represents not just Apple’s flagship tech prowess but also a lifestyle choice. Owning an iPhone is often bizarrely equated with success and superior social standing. Which is why even in a price-sensitive market like India, Apple’s customer base has remained strong and continues to grow.
By discontinuing — maybe temporarily — more affordable options, Apple is making a statement: we are as premium as they come. Want a budget phone? Think different, think Android.
Unlike brands such as Samsung, Xiaomi, or OnePlus that cater to a wide range of price segments, Apple has always maintained a deliberate distance from the mid-range and budget categories. The iPhone SE got Apple closer to its own version of a budget iPhone but not any more.
While a large chunk of the market — India is very much an Android country — thrives on price sensitivity, there is an increasingly prominent consumer base that prioritises brand value over cost. Apple’s brand equity remains very high — for first time buyers as well as repeat customers. The company's continued success in India, despite its high pricing, is testament to this growing segment. Quarter after quarter, Apple continues to top the premium smartphone market in India.
For years, Apple has relied on various strategies to appeal to this aspirational audience — the first timers. Bank cashback offers, exchange programs, and no-cost EMI schemes have made it easier for middle-class buyers to afford iPhones.
With the launch of the iPhone 16E at a higher-than-expected price point, Apple seems to be betting on this financing ecosystem to keep demand steady rather than offering a truly affordable device.
What the iPhone 16e means for Apple in India
Apple’s decision to do away with budget-friendly models indicates that it no longer sees the need to compromise on price to attract customers. Instead, it is focusing on strengthening its premium image. The move aligns with its recent investments in India, including opening official Apple Stores in Mumbai and Delhi, which serve as brand experience hubs rather than mere retail outlets.
While Apple is unlikely to dominate India’s smartphone market in sheer volume, it is laser-focused on increasing revenue share. The iPhone 16e’s pricing ensures that even its ‘entry-level’ model remains firmly in the premium category, further boosting profit margins and average selling price (ASP).
The iPhone 16e marks the end of budget iPhones, solidifying Apple’s position as a premium brand. This might upset some budget-conscious buyers, but the growing middle class in India is likely to keep Apple popular. With financing options and trade-in deals making the phones more affordable, Apple’s strategy of exclusivity seems to be working well in India.
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