iPhone 16E joins Apple’s ‘Made in India’ lineup for local sales and exports

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Apple has officially introduced the iPhone 16E, a refreshed version of the entry-level iPhone SE (2022). Notably, the company confirmed that the device is being assembled in India from the outset, catering to both domestic consumers and international exports.

With this launch, Apple has now localised production for its entire iPhone 16 series. The company has already been manufacturing previous models, including the base versions of the iPhone 15, iPhone 14, and iPhone 13, through its contract partners in India.

"The entire iPhone 16 lineup, including the iPhone 16e, is being assembled in India for local consumers as well as for export to select markets," Apple stated on Wednesday.

Powered by Apple’s A18 chip, the iPhone 16e features the same processor found in the standard iPhone 16 models. It delivers AI-driven capabilities at a more accessible price point and integrates Apple’s in-house 5G modem, designed to enhance battery efficiency and connectivity.

The iPhone 16E will be available in white and black, with storage options of 128GB, 256GB, and 512GB. Pricing starts at Rs 59,900, and the device will be available from February 28 through Apple’s official stores, e-commerce platforms, and authorized retail partners across India.

Analysts believe pricing will be a key factor in India, as the iPhone 16e competes with older iPhones that offer distinct advantages, such as superior cameras—a significant consideration for buyers. They suggest that this model will help Apple boost overall sales, appealing to consumers who don’t necessarily seek the latest flagship but still want an updated iPhone.

Faisal Kawoosa, founder and analyst at TechArc, told Moneycontrol the iPhone 16E is seen as an option that would lower barriers for customers in India to enter the Apple ecosystem. At the same time, it would encourage them to buy the latest generation of iPhones, who otherwise would purchase older generations that fit their budgets.

"Right now, we can get iPhone 15 at Rs 61,000, just Rs 1,000 more than 16e pricing. Even if there were card and bank offers, they would apply to both, typically at Rs 5,000. So, the net effective price of the iPhone 16e would settle at Rs 55,000. I believe it should not cross the psychological pricing barrier of Rs 50,000. The net effective price for customers in India should have been under Rs 50,000 for the base variant 16e," Kawoosa added.

While the delta of $200 for iPhone 16E and base iPhone 16 series makes sense for developed post-paid operator-controlled markets, Tarun Pathak, research director at Counterpoint, told Moneycontrol that open markets will have a different set of pricing variables at play, like discounts from channel partners that will reduce the gap between 16 and 16e.

"For some, this might swing purchases in favour of iPhone 16, but then there will be users looking to save additional bucks. Additionally, with more than 5 in 10 users in the premium segment buying phones on EMI, the monthly delta between 16 and 16e will be even lower," Pathak said.

Apple recently broke into India’s top five smartphone brands for the first time during the October-December quarter. The company is expanding its regional presence by scaling up local manufacturing and strengthening its retail network.

According to research firm Canalys, the latest iPhone will likely accelerate upgrades from older Apple models. Its share in Apple’s overall portfolio is projected to grow from single digits in 2022 to 10% by 2025, highlighting the iPhone 16e’s role in increasing Apple’s reach in emerging markets, including Southeast Asia and Latin America, where affordability is a significant factor for buyers.

“This device helps Apple maintain a competitive edge by attracting first-time iPhone users. With a lower price, the iPhone 16e is expected to appeal to customers who previously bought second-hand iPhones or those looking to upgrade from older models,” said Le Xuan Chiew, an analyst at Canalys.

Market research firm Omdia estimates that the iPhone 16e could contribute to a 1% increase in global iPhone shipments.