The iPhone 16e Is Succeeding Where The iPhone SE Failed

Even though the iPhone 16e has only been out for about 5 months, early sales data indicates that the entry-level device is already succeeding in a way that the iPhone SE did not. According to a research report from Consumer Intelligence Research Partners (CIRP), the iPhone 16e during its first full quarter of availability accounted for an impressive 11% of U.S.-based iPhone sales. In contrast, the iPhone SE during the same quarter in 2024 accounted for just 5% of new iPhone sales.

While both devices were positioned as more affordable iPhone options, there must be a reason why the iPhone 16e has proven to be more popular than the iPhone SE. The situation is all the more interesting because the iPhone 16e is $100 more expensive than the iPhone SE was when it launched. 

One possible explanation is that the iPhone SE was simply too small for many users. While I have always preferred a more compact form factor, many users today want a bigger display. And as devices have gotten slightly lighter, the days of lugging around a clunky and hefty iPhone are largely in the past — unless, of course, you opt for an iPhone Pro Max

Another explanation is that the value proposition offered by the iPhone 16e is markedly different than what the iPhone SE brought to the table. Whereas the iPhone SE often featured the previous year's processor — as part of an effort to keep costs down — the iPhone 16e shipped with the same A18 processor that Apple shipped with the iPhone 16.

Coupled with the device's 6.1-inch display — which is markedly bigger than the iPhone SE's 4.7-inch display — it stands to reason that many consumers viewed the iPhone 16e as offering more bang for their buck than the SE. Additionally, the iPhone 16e shipped with 128GB of storage as opposed to the 64GB that came with the entry-level third-generation iPhone SE.

It's also worth noting that every iPhone SE model shipped with Touch ID instead of Face ID. Perhaps this design difference made some consumers feel that the iPhone SE was less innovative and, in turn, too obviously an entry-level option. There might also be an aspect of human psychology in play here, insofar as users who desire a more budget-friendly iPhone don't necessarily want it to look like a budget iPhone.

The CIRP report notes in part: "Any fears that the iPhone 16e was 'stuck in the middle'- too expensive for bargain iPhone buyers and inadequately spec-ed for those willing to pay the price – were misplaced. In addition to swallowing up any would-be iPhone SE buyers, the iPhone 16e also took share from legacy iPhone 15 and 14 models."

As much as Apple tried to make a smaller iPhone work — both with the iPhone mini and the iPhone SE — sales were never strong enough to justify continued production. As it stands now, with the early success of the iPhone 16e, it's fair to assume that the era of the small iPhone is officially over. Though there certainly exists a vocal minority of users who prefer using a smaller iPhone, the simple reality is that most users prefer a larger display.

I can speak to this point from personal experience. For years, I preferred smaller iPhone models. Anything as close in size to the iPhone 5s was preferred. But over time, as new iPhone models became more and more powerful, I eventually made the leap to an iPhone Pro and haven't looked back. Ultimately, the power and functionality offered by Apple's larger-screened iPhone models simply outweighed any real or perceived inconvenience of having a more unwieldy device. And truth be told, I'm so accustomed to the iPhone Pro size that it doesn't even seem unusually large at this point.

As a final point, it's worth noting that the iPhone 16e is the first device to ship with Apple's custom C1 5G modem. The modem marks the first concrete step from Apple to wean itself off of Qualcomm. Looking ahead, there are reports that Apple's rumored iPhone 17 Air will also include the C1 modem. With the iPhone 17 Air poised to be the thinnest iPhone ever created, the power efficient C1 will be able to keep battery life high. To this point, note that the iPhone 16e boasts 4 more hours of battery life relative to the similarly sized iPhone 16.