Apple has launched its latest budget-friendly smartphone, the iPhone 16e, for pre-sale in key markets, including China and India, as part of its strategy to appeal to price-sensitive consumers. Priced at $599 and equipped with artificial intelligence capabilities, the iPhone 16e enters the market shortly after Huawei introduced its premium trifold smartphone. In comparison, the standard iPhone 16 starts at $799.
Analysts see Apple’s decision to release a more affordable model as an attempt to expand its presence in the mid-range segment. The iPhone 16e replaces the SE series, making it Apple’s first budget model since 2022. “The 16e is a major upgrade from the SE and caters to the upper mid-range market, but competition remains fierce in China,” said Archie Zhang, a senior analyst at Counterpoint Research.
China, Apple’s second-largest market, has seen Huawei make a strong comeback despite U.S. sanctions. According to Canalys data, Huawei overtook Apple in market share last year, securing 16% compared to Apple’s 15%. This marks a shift from 2023 when Apple led with 19% while Huawei had 12%.
Apple’s AI strategy has also encountered challenges, with its “Apple Intelligence” service currently limited to select English-speaking regions. To address this, Apple recently partnered with Alibaba to introduce AI features in China, though an official rollout date is yet to be announced.
Adding to Apple’s difficulties, domestic competitors like Oppo, Vivo, and Huawei continue to offer high-end features at lower prices. Furthermore, nationalistic sentiment among Chinese consumers has presented another hurdle for Apple, noted Lori Chang, a senior analyst at Isaiah Research.
On a global scale, Apple has struggled to attract new buyers, with smartphone sales declining since their peak in 2022. Counterpoint Research reports that Apple’s worldwide shipment share dropped from 19.3% in 2023 to 18.2% in 2024.
Huawei’s Global Comeback
Meanwhile, Huawei has made strides internationally, unveiling its innovative trifold smartphone, the Mate XT, in Malaysia. The launch marks one of the company’s most significant global events since U.S. sanctions were imposed in 2019. The Mate XT, which expands into a tablet using dual hinges, first debuted in China last September alongside the iPhone 16. However, with a hefty international price tag of $3,673, it remains a luxury item.
Despite its growing presence in China, Huawei’s global smartphone sales remain restricted. The company relies on a domestic chip manufacturer for advanced semiconductors, which faces production challenges due to U.S. trade restrictions.
Before the sanctions, nearly half of Huawei’s smartphone sales came from international markets. However, the company’s global sales plummeted after losing access to critical U.S. technology. In 2023, its global smartphone shipment share stood at just 4.1%.
“Over the next two years, Huawei is likely to focus on solidifying its domestic market while working to stabilize semiconductor production. Once supply concerns are addressed, further expansion may follow,” Chang added.
