March 7, 2025 – According to a blog post released by market research firm CIRP, Apple has reshaped its iPhone SE development strategy, with the newly launched iPhone 16e deviating from its previous low-end market positioning. However, the higher positioning and increased price tag may pose challenges in attracting upgrades from existing iPhone SE users.
CIRP’s analysis of the iPhone SE buyer demographics reveals that its appeal primarily lies among Android users, first-time smartphone buyers, and current SE owners. The report indicates that the premium pricing of the iPhone 16e could potentially alienate these traditional user groups.
In the 2024 US buyer population analysis, it was observed that 19% of iPhone SE purchasers switched from Android devices, compared to just 14% for other iPhone models. Additionally, 9% of iPhone SE buyers were first-time smartphone owners, significantly higher than the 2% for other iPhones. Furthermore, 26% of iPhone SE purchases were made by individuals who previously owned an iPhone SE, suggesting a preference for staying within the same product line rather than upgrading to a higher-end model.
Interestingly, the report also highlights that 45% of iPhone SE buyers previously owned a “numbered” iPhone model (such as iPhone 11, 12, etc.), whereas this figure stands at 82% for other iPhone users. This data suggests that iPhone SE owners tend to favor lower-priced, functionally simplified devices over more advanced iPhones.
CIRP’s report underscores the significant challenges Apple faces in convincing SE users to upgrade to the iPhone 16e. With a starting price of 599,theiPhone16eisconsiderablymoreexpensivethantheSE′s429, potentially pushing SE users towards more affordable alternatives.
The success of the iPhone SE has been attributed to its affordable price point, which has appealed to a broad user base. However, the elevated pricing of the iPhone 16e raises questions about whether traditional SE users will embrace this higher-priced offering. It remains uncertain whether the iPhone 16e can establish its own customer base by attracting potential users from other iPhone series.
As the iPhone 16e emerges as Apple’s most affordable model, SE users are faced with a dilemma when upgrading: either pay the increased price for the 16e or opt for cheaper Android phones or refurbished iPhones. While Apple clearly hopes users will choose the former, the $599 price tag may be a hard sell for budget-conscious SE owners.
CIRP acknowledges that Apple’s departure from the low-cost smartphone market constitutes a risk, and the impact of this strategy remains to be seen. Whether iPhone SE users will embrace the iPhone 16e as their upgrade path remains an open question.
