Apple’s iPhone 16e sold 60% better in its first three days than the 2022 iPhone SE, according to analyst firm IDC. However, analysts still expect a 2% decline in Apple’s market performance in China this year.

Priced at US$599, the 16e competes with affordable Android devices, which benefit from China’s US$41 billion in subsidies favoring brands like Xiaomi and Vivo.

With a single rear camera, limited storage, and no advanced AI, the iPhone 16e may struggle in China. Apple plans to launch its Apple Intelligence suite there by mid-year, but analysts doubt it will change market trends.

IDC’s Bryan Ma noted that Chinese consumers prefer high-end models, making budget iPhones less attractive. Instead, the iPhone 16e could perform better in markets like India, where it may account for up to 20% of iPhone sales in late 2025.

Apple reported an 11% sales decline in China during the holiday season, adding to its challenges. The company remains hopeful for marginal revenue growth, supported by its broader product lineup.

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