Apple Unveils Advanced Commerce API to Support Diverse In-App Purchase Formats
Apple introduces Advanced Commerce API to facilitate more in-app purchase options, including subscriptions and content add-ons, without changing commission structure.
Taylor Brooks
Apple has officially launched the iPhone 16e, a new addition to its iPhone 16 lineup, which replaces both the iPhone SE and iPhone 14. The device is positioned as the most affordable member of the iPhone 16 family, with a focus on emerging markets, particularly India, the world's second-largest smartphone market.
The Indian market has been a significant contributor to Apple's growth, with the company recently breaking into the top five vendors in the country. In 2024, India became Apple's fourth-largest market, with a record 12 million shipments during the quarter, representing a 35% year-over-year growth, according to IDC. The market is expected to cross the 15 million milestone this year.
However, it's worth noting that Apple's success in India wasn't driven by the iPhone SE or iPhone 14. Instead, the iPhone 15 and iPhone 13 were the highest shipped models, capturing a 6% share of the overall smartphone market in Q4. The iPhone SE, on the other hand, has seen a decline in shipments, from 18% of overall iPhone shipments in its launch year to 6% two years later, per IDC data.
Navkendar Singh, associate vice president at IDC India, revealed that nearly two-thirds of iPhone volumes in India come from previous-generation models. This trend could impact the iPhone 16e's adoption, as consumers may prefer older models with similar features at a lower price point.
The iPhone 16e starts at 59,900 Indian rupees (~$689) and goes up to $1,034. In contrast, the older iPhone 15 starts at $804 and iPhone 16 at $919. While the price difference may seem significant, it may not be enough to justify choosing the iPhone 16e over older models, especially considering the popularity of equated monthly installment (EMI) options, which allow users to purchase high-ticket items via installment payments.
Singh noted that with EMI offers, the difference in real terms would make many prefer the iPhone 15 or 16 over the iPhone 16e. This could limit the iPhone 16e's appeal, despite its lower price point.
One potential upside for Apple is the expansion of Apple Intelligence to a more affordable segment with the iPhone 16e. This could drive more Apple Services revenues over time. However, Apple Intelligence is currently in its infancy and won't arrive in India until April.
The iPhone 16e is assembled in India, alongside other iPhone 16 models. While local assembly may not impact pricing in the short term, it could contribute to Apple's long-term growth in the market.
Sanyam Chaurasia, a senior analyst at Canalys, believes that the iPhone 16e might attract customers who would otherwise opt for an iPhone 12 or 13, both of which are still available through retail channels in India. Younger users might also prefer the iPhone 16e over older models.
However, the timing of the iPhone 16e's launch may not be ideal, as it's not an upgrade season, which usually falls around Indian festivals in the later part of the year. Chaurasia noted that Apple is likely to offer discounts on the iPhone 16e during the festive season, but similar discounts on existing iPhone models could make them even more attractive to consumers.
In conclusion, while the iPhone 16e marks Apple's latest effort to capture emerging markets, its success remains uncertain amidst strong competition and consumer preferences. The device's lower price point and features may not be enough to sway consumers, especially in a market where older models continue to sell well.
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