An Experimental Budget Model That Misses Consumer Expectations

The iPhone 16e budget model has finally been revealed, matching earlier leaked information. However, I’m honestly quite perplexed by this release. It’s hard to imagine which customer demographic Apple is targeting, and I wouldn’t recommend it.

That said, iPhone releases are profit opportunities for gadget bloggers and YouTubers like myself. So let me explain why the iPhone 16e is so puzzling and analyze why Apple might have released this model. For transparency, I don’t plan to purchase the iPhone 16e myself.

[Conclusion] Why You Should Buy the Standard iPhone 16 (SE4) Instead

To start with my conclusion: if you’re considering the iPhone 16e, you’re better off buying the standard iPhone 16. The reason is simple—the ultra-wide camera.

We live in an era where video is king, and many people record videos as frequently as they take photos. Unlike photos, videos benefit tremendously from an ultra-wide camera. This is because videos are cropped for stabilization, which narrows the field of view. With just the main camera, your subjects often get cut off at the edges.

An ultra-wide camera, however, allows you to capture your subjects much more comprehensively. Whether it’s pets, children, or street scenes, the difference is significant. If you plan to shoot video, an ultra-wide camera is essential.

iPhones: Unrivaled Smartphone Video Performance

Additionally, iPhones offer unparalleled video performance in the smartphone market. Whether you choose the iPhone 16 or 16e, Apple’s internal processing technology ensures excellent video quality.

And yet, this ultra-wide camera only costs an additional $200. For a device you’ll use for over two years to capture memories, there’s really no reason to skimp on this feature.

[Specs] The iPhone 16e Is Nearly Identical Except for the Camera

Conversely, besides the missing ultra-wide camera, the iPhone 16e is almost identical to the standard iPhone 16.

On paper, there’s almost no difference. Yes, there are minor disparities like no MagSafe support, no camera control button, and the presence of a notch, but these aren’t deal-breakers.

The critical issue is the lack of an ultra-wide camera, which is devastating for overall functionality. Paying just $200 more for this feature is actually a bargain. That’s why I can’t recommend the iPhone 16e.

The Greatest Advantage of Budget iPhones Is Buzz

So why would Apple release a smartphone with such questionable market appeal? The biggest reason is generating buzz.

The previous iPhone SE series was released every few years, typically around February after the September product launch hype had died down. This strategy allowed Apple to maximize revenue by utilizing a single resource from multiple angles.

However, this iPhone 16e is significantly more expensive than previous SE models. At only $200 less than the standard model, you’re losing too much functionality, causing many to advise, “Just buy the standard model instead.”

Apple Is Absolutely Committed to Protecting the iPhone Brand

This pricing strategy reflects Apple’s approach to protecting the iPhone brand. As the smartphone market matures, budget models risk diminishing the value of standard models.

Pixel Suffers Brand Devaluation with Each Budget Release

Google’s Pixel series releases an “a” series (budget model) each February, but the problem is that these “a” models completely overshadow the standard models.

As differentiation between standard and budget models becomes increasingly difficult, the prevailing thought becomes, “Why not just buy the a model?” This ultimately disappoints standard model users and devalues the brand.

Apple Intentionally “Stillborn” the iPhone 16e

In contrast, Apple appears to have intentionally set up the iPhone 16e for failure to protect the value of the standard iPhone 16.

Unlike Google, which sacrificed the Pixel 9 for the Pixel 9a, Apple sacrificed the iPhone 16e to maintain the iPhone 16’s value.

The $799 price point essentially sends the message: “Instead of buying this, get the standard model.”

iPhone 16e Marks the Beginning of a New Budget Series

But Apple doesn’t simply give up. Their choice of the name “iPhone 16e” suggests the possibility of annual budget model releases in the future. Next year could bring an iPhone 17e, followed by an iPhone 18e. Apple appears to be adopting Google’s dual-release strategy.

Apple Wins Whether the iPhone 16e Sells or Not

If the iPhone 16e sells well at $799, Apple can maintain that price for next year’s 17e. If it doesn’t sell well, they can simply lower the price next year.

The iPhone 16e Has Significant Room for Price Reduction

Currently, the iPhone 16e’s biggest issue is its price. It’s drawing criticism because it’s too expensive. If Apple reduces the price by $200 when the iPhone 17 launches, the iPhone 16e could be properly differentiated and gain renewed attention. In other words, the real battle for the iPhone 16e might begin after the iPhone 17 launches in September this year.

The iPhone 16e Is a By-product of Cost Reduction

Moreover, Apple discontinued production of the iPhone 14 and iPhone SE simultaneously with the iPhone 16e’s release. This means they’ve converted the iPhone 14 production line to iPhone 16e production and completely terminated the iPhone SE line. Through this strategy, Apple is streamlining production while generating new buzz.

Consider the iPhone 16e After a Price Drop

However, this assessment applies to the “current” situation. As mentioned earlier, if sales are poor, the price will likely decrease. There’s a good chance it will be discounted after the iPhone 17 launches. In just 7 months, the iPhone 16e might reach a reasonable price point. But if you’re willing to wait 7 months, wouldn’t it be better to just buy the iPhone 16 now?

The iPhone Mini Model Is Completely Discontinued

Finally, the iPhone mini model has completely disappeared. The demand for smartphones smaller than 6.1 inches is simply too low in the global market. Sales were poor across multiple countries, and Apple has no reason to continue producing mini models.

Those who were waiting for a new mini model should now abandon that hope.