iPhone 16e unlikely to be competitive in China, Macquarie says

Investing.com -- Apple's upcoming entry-level iPhone 16e is unlikely to gain significant traction in China due to its higher price point, Macquarie said forecasting that Android brands will continue to gain market share.

While the iPhone 16e represents a significant upgrade over its predecessor, including a more powerful A18 chip, a 48MP camera, and longer battery life, its 25% price increase to $599 (RMB 4,499) makes it less competitive in China’s price-sensitive market, the firm said.

“We believe the arrival of the new entry level iPhone 16e in February could revitalise sales in developed marketing in 1H25, with iPhone SE selling the most in Japan, USA and Western Europe previously,” analyst said.

China accounted for only 1.5% of previous iPhone SE sales. Macquarie expects Android brands to benefit from government subsidies in China, which are driving mid-range smartphone sales.

“Government subsidies in China boost mid-range smartphone sales, as we expect Xiaomi (OTC: XIACF) to see the fastest growth among brands,”analyst at Macquarie added.

The firm sees global smartphone shipments rising 6.4% in 2025 to 1.31 billion units, with Android continuing to gain share.

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