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Australian retailers and carriers looking for growth from Apple’s new iPhone 16e could be facing a problem if the new smaller device $999 device starts stripping sales form the more expensive $1,897 iPhone 16 claim analysts. Retailers don’t make as mu

Australian retailers and carriers looking for growth from Apple’s new iPhone 16e could be facing a problem if the new smaller device $999 device starts stripping sales form the more expensive $1,897 iPhone 16 claim analysts.

Retailers don’t make as much margin selling an iPhone as they do a top end Android device with margin cannibalisation a potential problem with the new device as consumers look for value at a lower price.

Both carriers and retailers will be closely watching for whether it spurs users to fork out for upgrades or eats away at sales of premium iPhone phone models, say BofA Securities analysts in a research note.

Apple debuted the iPhone 16e on Wednesday for $999 and be available at the end of this month at JB Hi Fi and Harvey Norman.

Apple iPhone 16e

BofA securities analysts said “If the iPhone 16e does cannibalize sales of the iPhone 16, this would shift total iPhone ASPs lower. However, we believe that the iPhone 16e will also incentivize users to upgrade from older iPhone models, which should help offset the potential ASP decline,”.

The new iPhone 16e, while being cheaper has fewer cameras and buttons than the current iPhone 16 models however it is still powered by the same A18 processor, and it will be fast enough to use Apple’s latest software features, the company said.

As for physical appearance it appears to be based around the older iPhone 14.

It does have piece of technology not found in the flagship iPhone 16 Pro: a new modem known as the “Apple C1” for communicating with mobile phone networks.

The tech giant said the new modem would be more energy efficient than the Qualcomm modems in previous iPhones including in other iPhone 16 models.

One of the highlights in their latest results is Lenovo’s server business which is growing momentum as the demand for AI services grow.

According to Bloomberg, Lenovo and its rivals are making a big push in 2025 to add artificial intelligence capabilities, hoping to get consumers to upgrade. The reception to this new crop of computers will be crucial to driving the market’s recovery.

“On-device AI for PCs is inevitable. Therefore, right now it is about suppliers trying to be patient as their customers are dealing with headwinds unrelated to these technology advancements,” said Ryan Reith, group vice president with IDC’s Worldwide Device Trackers.

In November, Chief Executive Officer Yang Yuanqing raised his outlook for global shipments in 2025 to double-digit percentage growth, up from a previous forecast of 5% to 10%, citing demand for AI PCs and the replacement cycle facilitated by Windows 11.

Lenovo PC products are ranged at JB Hi Fi.

About Post Author

David Richards

David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.