Citi Research predicts that the new Apple iPhone 16e budget smartphone will account for approximately 10% of all iPhone shipments in 2025.
Citi analysts predict that Apple will ship 238 million iPhones in 2025, up 5% from 2024. In 2026, this figure could grow by another 5% to 250 million units.
The new iPhone 16e was announced last week, and its sales will start on February 28. Citi analyst Atif Malik noted that the starting price of $599 was higher than expected, but this is justified due to the need to support Apple Intelligence and the availability of the A18 processor. In addition, the smartphone is still subject to subsidies in China. At the same time, the company considers the iPhone 16e to be part of the iPhone 16 family, not another model of the SE series. Malik also emphasized that the iPhone 16e received the long-awaited proprietary modem from Apple.
Citi Research maintains a «Buy» rating on Apple shares and sets a target price of $275.
Recently, Apple’s share of the Chinese market has declined due to competition from Huawei and other manufacturers. However, the Seeking Alpha analyst believes that a new partnership with Alibaba Group could help improve sales in the region. The fact is that Apple has chosen the Alibaba Qwen model as a provider of AI services for the Chinese market.
This is an important step for Apple, as the company’s sales and market share in China have been declining in recent quarters. Tim Cook explained the decline in iPhone sales in the country by the lack of Apple Intelligence features that will now appear in the new model.
Price of the new iPhone 16E may vary significantly from country to country. The cheapest price for this model is in the United States, while in Turkey it is about twice as expensive.
Source: seekingalpha