iPhone 16e Sales Surge, But Challenges Loom in China Market

Apple has launched its new iPhone 16e, and it’s selling faster than the old iPhone SE from 2022. However, it might not help Apple much in China, where sales are expected to drop by about 2% this year. A research company called IDC found that the iPhone 16e sold 60% better in its first three days compared to the older model. But there’s tough competition from Android phones that are getting help from the Chinese government, which is giving out a lot of money to support Android brands like Xiaomi and Vivo.

The new iPhone 16e costs $599, while the older SE was only $429. This higher price makes it harder for Apple to compete with cheaper Android phones. The iPhone 16e has only one camera at the back, not much storage, and fewer smart features, which makes it less appealing in China.

The Chinese government has set aside about $41 billion to help boost the economy, which includes support for smartphone sales. Apple is also trying to bring more smart features to its devices in China later this year. Some analysts believe that Apple could sell more in other countries, like India, where they expect the 16e to account for about 20% of iPhone sales in the second half of the year.

Apple’s sales in China dropped by around 11% during the holiday season, mainly due to weak iPhone sales. Overall, the company thinks its revenue will only grow a little in this period.