San Francisco, California - Apple's latest attempts to segment the smartphone market have met with notable consumer resistance. Both the cost-effective iPhone 16e and the design-forward iPhone Air are experiencing what industry observers term "sluggish sales," raising questions about their long-term place in Apple's portfolio. The situation has escalated to the point where Apple has initiated significant production scale-backs, reflecting a clear mismatch between the company's ambitions and market demand.
The iPhone Air, representing Apple's most radical design shift in years, has been a particular focal point of concern. Data from analytics firms shows that the device's sales reached only about one-third of the company's highest initial expectations. The poor uptake has had immediate consequences: assembly partner Foxconn has completely dismantled its iPhone Air production lines, and another key supplier, Luxshare, stopped its production in late October. These are not minor adjustments but indicative of a product failing to find its audience.
Market analysts point to a critical pricing error as a core issue. The iPhone Air is positioned awkwardly in Apple's lineup, costing only $100 less than the fully-featured iPhone 17 Pro while being $200 more expensive than the standard iPhone 17. For many consumers, saving a mere $100 does not justify losing a telephoto lens, an ultra-wide camera, and enduring significantly weaker battery performance. This poor value perception is rapidly eroding the device's financial worth, with its resale value plummeting nearly 50% within weeks of launch.
Similarly, the iPhone 16e has failed to capture the imagination of budget-conscious buyers in key markets. Its role appears to have been largely tactical, serving as a low-risk platform for Apple to debut its first in-house 5G modem chip. However, from a sales perspective, it has not generated meaningful momentum, contributing to an overall softer launch cycle for the iPhone 16 series that necessitated uncharacteristically early price cuts from Apple to stimulate demand.
The implications extend far beyond Cupertino. The iPhone Air's commercial stumble has sent shockwaves through the competitive landscape, causing a strategic retreat among rival phone makers. Major brands like Xiaomi and Vivo, which had plans for similar ultra-thin models, have now shelved those projects, deciding the market potential does not justify the development cost and compromise. Apple's failure has, in effect, cooled an entire segment of the industry before it even properly launched.
Inside Apple, the response involves tangible product plan revisions. Sources indicate that work on a second-generation iPhone Air has been postponed while engineers redesign the device, likely aiming to add a second camera and improve its battery capacity. This is a direct admission that the initial vision was commercially non-viable and requires substantial change.
Some industry watchers suggest a more nuanced view, framing these products as necessary experiments. The iPhone 16e and Air could be seen as vehicles for de-risking new technologies, such as Apple's silicon for connectivity, or for exploring the engineering limits of thinness in preparation for future form factors like foldables. Their market performance, in this light, is secondary to the technical and strategic intelligence they provide.
Ultimately, the narrative around the iPhone 16e and iPhone Air serves as a potent reminder of the razor's edge that global tech giants walk. It highlights the immense difficulty of successfully launching products that deviate from proven formulas, especially when they ask consumers to pay a premium for perceived trade-offs. Apple's next steps will be closely scrutinized as a lesson in corporate agility and market listening.