Apple’s latest iPhone 16e offers various appealing features, yet it may not align with the expectations of many users. With regard to both its name and price point, it’s not positioned as an iPhone SE. A recent study of purchasing habits among Apple consumers—particularly those who previously bought the iPhone SE—highlights the considerable risk this new model poses for Apple.
Insights from iPhone SE owners: Limited interest in premium iPhone models
The newest CIRP analysis focuses on the user demographic of iPhone SE owners, examining their purchasing habits compared to the broader iPhone user base. Specifically, the report addresses the question: what was the last device owned by these iPhone owners?
The findings indicate that Apple faces a significant challenge in persuading SE owners to consider the iPhone 16e as their next smartphone.
According to Michael Levin and Josh Lowitz:
Overall, it seems that iPhone SE buyers have opted to remain with low-cost, basic-feature phones, rather than transitioning from an iPhone SE to pricier models. […]
Interestingly, 26% of SE buyers previously owned … another iPhone SE. When it came time for these owners to upgrade, they didn’t see the need to choose anything beyond the latest iPhone SE. Thus, they opted for a newer iPhone SE. In fact, only 3% of buyers of other iPhone models made the leap from an iPhone SE.
A significant portion of SE buyers (45%) had previously owned a standard model iPhone, effectively downgrading.
The CIRP report clearly illustrates the crucial role that price plays for the iPhone SE customer base, reinforcing the notion that the new starting price of $599 for the iPhone 16e might drive potential customers to explore other options.
What stood out to me was that 45% of SE purchasers had past experience with a standard model iPhone. This hints that even users who previously enjoyed a more “premium” iPhone found its benefits insufficient. Instead, they chose to switch to an SE primarily due to cost considerations.
Challenges Ahead for Future iPhone SE Upgraders
- spend more on the pricier 16e model
- or consider acquiring a lower-cost Android device or potentially a refurbished iPhone
Apple undoubtedly hopes the first option becomes a reality. However, $599 is a significant leap from the previous $429. While carrier promotions may help mitigate the initial cost, it’s likely that iPhone SE owners are less inclined to stick with a “major” carrier, tending instead to favor budget providers that don’t offer as compelling deals.
Deciding to move away from the budget smartphone segment carries risks for Apple. Yet, it may take some time to fully understand the implications of that decision.
Do you believe that iPhone SE owners will choose the 16e when it’s time for their next upgrade? Share your thoughts in the comments.
