In early 2025, Apple transitioned from offering a budget-friendly model to introducing the mid-range iPhone 16e. This new release came packed with upgrades but also included some compromises that may deter potential buyers. Despite these challenges, the iPhone 16e made its mark by securing a spot among Europe’s top 10 best-selling smartphones, ranking ninth and capturing 2% of the total device sales in March 2025. However, its initial sales lagged behind the 2022 and 2020 iPhone SE models due to obstacles such as a high starting price.
The iPhone 16e faces tough competition not only from Apple’s own lineup but also from Samsung’s flagship models. According to Counterpoint Research, the iPhone 16 Pro and iPhone 16 Pro Max dominated Europe’s March 2025 sales, claiming first and second places with market shares of 6% and 5% respectively. The standard iPhone 16 followed closely, also with a 5% share, and was recently named the best-selling global smartphone for Q1 2025.
Samsung is keeping the rivalry alive with its Galaxy S25 Ultra and Galaxy S25, each securing a 3% market share in March 2025. Even the Galaxy S24 from the previous year is holding strong in the European market. Samsung’s Galaxy A55 and Galaxy A16 5G models also made the list, illustrating that European consumers appreciate both premium and budget-friendly options when priced right.
Criticism has emerged regarding the iPhone 16e’s pricing. Counterpoint Research’s Associate Director Jan Stryjak noted that previous iPhone SE models achieved greater success in Europe due to their more affordable prices. The iPhone 16e’s launch price of €699 ($599), a significant rise from the €519 ($429) and €479 ($399) tags of its predecessors, has dampened its appeal during these tough economic times. Furthermore, the iPhone 15 is being offered at the same price in some areas, leading many consumers to choose the older, but possibly better-specced, device. As a result, the iPhone 15 also appeared in Europe’s top-10 list for April.
The introduction of the iPhone 16e, featuring Apple’s proprietary C1 5G modem, indicates the tech giant’s move to reduce its reliance on Qualcomm, gradually releasing products with more in-house components. A Bill of Materials analysis by Counterpoint Research revealed that 40% of the iPhone 16e’s parts are Apple-made, with the C1 baseband chip saving $10 per unit. While this might seem minor, according to analyst Ming-Chi Kuo of TF International Securities, Apple could sell 22 million units in 2025, potentially resulting in $220 million in saved costs. Nevertheless, the iPhone 16e’s higher price point may continue to pose a challenge for European consumers.
