Apple’s iPhone No Longer in the Affordable Category.

Summary: The iPhone 16E's pricing of around Rs 60,000 indicates a significant change in Apple's approach.

Are phones that cost more than Rs 40,000 considered "budget" phones? Not for the majority of brands. However, what about Apple?  Apple's choice to sell the iPhone 16E at around Rs 60,000, indicates a significant change in strategy and a departure from the idea of "budget" iPhones.

Models like the iPhone SE, which has been available since 2016, at least offered comparatively more modest entry points into the Apple ecosystem, even though Apple has never really competed in the budget market. However, the iPhone 16E implies that Apple desires the luxury label attached to its name.

While many do claim that iPhones were never affordable to the majority of people. But putting a strong argument upfront, the iPhone SE bears the mark of a reasonably priced iPhone. Also many have associated iPhones with a status symbol in India, despite it being a simple phone like many others in the market. 

Whether you like it or not, large groups of people have these opinions. Additionally, it explains why this latest iPhone is referred to as the iPhone 16e rather than the SE.

Even though the prior generation iPhone SEs were excellent phones, they were referred to as "sasta" iPhones. That branding is pretty unwelcome when purchasing an iPhone and does not increase the showoff quality.

This is because the iPhone embodies both Apple's flagship technological capabilities and a way of life. Strangely, owning an iPhone is frequently associated with success and high social status.  Because of this, Apple's client base has stayed stable and is still expanding, even in a nation as price-sensitive as India.

Apple has consistently kept a purposeful distance from the mid-range and budget categories, in contrast to companies like Samsung, Xiaomi, or OnePlus which serve a variety of price points. Apple is no longer a low-cost iPhone as it was with the iPhone SE.

Even though a significant section of the Indian market is reliant on Android and thrives on price sensitivity, there is a rising consumer base that prioritizes brand value over pricing. Apple's brand equity is still quite strong, both for new and returning customers. 

This expanding market is demonstrated by the company's ongoing success in India, even with its expensive prices. Apple is at the top of India's premium smartphone market, quarter after quarter.

Apple's decision to discontinue its low-cost models shows that it no longer believes that lowering prices is necessary to draw in users. Rather, it is concentrating on enhancing its luxury image. 

The action is in line with its previous investments in India, which include the creation of official Apple Stores in Delhi and Mumbai that function more as hubs for brand experiences than as simple retail locations.

Apple is concentrating on growing its revenue share, even though it is unlikely to dominate the Indian smartphone market in terms of raw volume. The cost of the iPhone 16e guarantees that even its "entry-level" model stays firmly in the premium category, increasing average selling price (ASP) and profit margins.