Apple's iPhone 16e Outsells iPhone SE By 60%, But Analysts Say It Won't Stop China Sales From Sliding In 2025

Apple Inc.'s AAPL newly released iPhone 16e is off to a strong start, but analysts say it won't be enough to offset the tech giant's declining sales in China this year.

What Happened: According to IDC, sales of the iPhone 16e in its first three days were 60% higher than those of the third-generation iPhone SE launched in 2022, reported Bloomberg.

The new $599 model replaces the $429 iPhone SE, offering a refreshed budget option for consumers. However, the device features only a single rear camera, limited base storage, and lacks advanced AI capabilities — a disadvantage in China's competitive smartphone market.

IDC projects Apple's overall sales in China will fall about 2% in 2025. "The competition from Android will be even stronger, strengthened by the national China subsidies which will benefit Android significantly more than Apple," stated Nabila Popal, IDC's senior director.

While Apple plans to roll out its Apple Intelligence AI suite in China later this year, that may not be enough to shift consumer sentiment, the report noted.

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Why It's Important: Apple may find success elsewhere. IDC expects the iPhone 16e to account for up to 20% of iPhone sales in India in the second half of 2025.

Apple previously reported an 11% sales decline in China over the holiday period, with the iPhone likely a key contributor.

Apple reported $124.3 billion in revenue for its fiscal first quarter, surpassing analysts’ expectations of $124.13 billion. iPhone sales reached $69.14 billion, slightly lower than the $69.7 billion recorded in the same period last year.

Price Action: Apple’s stock closed at $213.49 on Friday, rising 1.82% for the day. However, it edged down 0.094% in after-hours trading. Year to date, AAPL is down 12.45%, according to data from Benzinga Pro.

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