iPhone 16e is a big risk for Apple, and this survey shows exactly why

Apple’s new iPhone 16e has a lot going for it, but it’s not quite the device many were expecting. Both in name and price, it’s not an iPhone SE. And a new survey of buying habits among Apple customers—and especially iPhone SE buyers—shows why the new model is a big risk for Apple.

iPhone SE owners’ history reveals little interest in premium iPhone offerings

The latest CIRP report has to do with the iPhone SE user base. It looks at how iPhone SE owners compare to the rest of the iPhone user base when it comes to buying habits. Specifically, the report answers the question: what was the last device these iPhone owners had?

The data shows that Apple has a big challenge on its hands convincing SE owners to choose the iPhone 16e as their next smartphone.

Michael Levin and Josh Lowitz write:

Overall, it appears iPhone SE buyers stayed with a low-price, minimal feature phone, rather than upgrading from an iPhone SE to more expensive models. […]

Perhaps most interesting, 26% of SE buyers previously had … another iPhone SE. When it was time for these iPhone SE owners to replace their phone, they did not think it necessary to upgrade beyond the latest iPhone SE. They bought a newer iPhone SE. In fact, only 3% of buyers of all other iPhones upgraded from an iPhone SE.

The largest percentage of SE buyers (45%) previously had a “number” model iPhone and effectively traded down.

CIRP’s report effectively proves how important price is to the iPhone SE customer base, and how the new $599 starting price of the iPhone 16e might send shoppers looking elsewhere.

The data point I found most fascinating was that 45% of SE buyers used to have a “number” model. This seems to show that even users who had experienced a more “premium” iPhone didn’t find its advantages compelling enough. Instead, they were swayed by price to downgrade to an SE.

Dilemma for future iPhone SE upgraders

Now that the most affordable iPhone starts at $599, iPhone SE owners face a dilemma the next time they’re ready to upgrade. They can either:

• pay up for the more expensive 16e model
• or shop for a cheaper Android or possibly refurbished iPhone

Apple certainly hopes the former will happen. But $599 is a much higher price than $429. Carrier deals can help lower the entry price, but I suspect iPhone SE owners are less likely to have a “major” carrier and instead trend more toward budget players that don’t have such enticing offers.

Abandoning the budget smartphone market is a risk for Apple. But it will take a long while before we know how that risk plays out.

Do you think iPhone SE owners will buy a 16e as their next upgrade? Why or why not? Let us know in the comments.

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