Source: Apple

Same price as 16e raises value proposition, especially during memory price rise

Apple has decided to keep the 17e price the same as the 16e – $599, which is very strategic, especially at a time when other OEMs are forced to go in for price increases due to rising memory prices. Global smartphone shipments have already been forecasted to fall 12% YoY in 2026 due to memory pricing and supply issues, dropping to just below 1.1 billion units, the lowest annual volume since 2013. The US-Israel-Iran conflict adds another layer of uncertainty now.

Launching the 17e at the same price but with decent specification upgrades makes for a compelling value proposition for consumers looking for a high-performing Apple device at a lower cost. The inclusion of the latest chipset along with 256 GB storage also future-proofs this device in handling newer features, especially Apple Intelligence. With the Apple and Gemini partnership, the AI features are likely to expand in the future. This is the first iPhone launched after this partnership. The device will also help Apple defend its share in the entry premium segment.

Also, keeping the notch instead of the dynamic island and a single camera visibly differentiates the 17e from other iPhones. In our consumer research, we have seen that visible differentiation is important for iPhone buyers when selecting the SKUs. This will also keep the 17e from cannibalizing other iPhone sales. 

16e success was more regional, Apple will look to expand with 17e

The US and Japan were the key markets for the iPhone 16e sales. The two markets contributed to over 60% of the 16e volumes in 2025. In Japan, there has been a preference for compact phones and Apple was able to successfully target young and mid-tier consumers there. In the US, the 16e did well in the prepaid segment by providing consumers with a solid device in the $500-$700 price segment.

The iPhone 16e was among the Top 10 best-selling devices globally from Q2 2025 to Q4 2025.

iPhone 16e Sales Share by Region, 2025

Source: Counterpoint Research Handset Model Sales

iPhone 17e strategy different from SE

With the 17e, Apple is taking a different approach than its SE strategy. The first iPhone SE was launched in 2016. However, the second iPhone SE was launched in 2020, during the 5G transition phase and after a gap of four years. Apple has decided to give the iPhone16e a refresh after one year. It seems like Apple is treating the $500-$700 price band as a competitive battleground and now wants to win share from the Android OEMs while providing value-conscious consumers a good option to upgrade to an iPhone and enter the Apple ecosystem. Apple will have the opportunity to convert the 16e and 17e users to the Base or Pro models in the coming years. This is also strategic as more Android OEMs target Apple in the ultra-premium segment, with their flagships launching at prices closer to iPhone prices.

Another aspect is the delay of the iPhone 18 launch to H1 2027. This will further increase the longevity of the iPhone 17e in 2026. Now, along with the n-1 and n-2 iPhones, value-conscious consumers will have a choice for an iPhone launched in the same year as well.