“The iPhone 16e is expensive. You might as well buy the iPhone 16.”
Apple has launched the budget smartphone 'iPhone 16e' in South Korea after three years. Employees at mobile telecommunications retail outlets in the Yeongdeungpo district of Seoul, visited on the 28th, said in unison, “Including the public subsidies, the iPhone 16 device is cheaper,” and noted, “It's advantageous to sign up for the iPhone 16.” Although the iPhone 16e is a new product released this year, its component performance and features are inferior to those of the 'iPhone 16' released in the latter half of last year.
The iPhone 16e is equipped with the A18 mobile application processor (AP), which is crucial for smartphone performance. This is the same as the iPhone 16. However, the number of GPU (graphics processing unit) cores has been reduced compared to the iPhone 16. While the iPhone 16 has two rear cameras, the iPhone 16e has only one. The wireless charging speed of the iPhone 16 is more than three times faster. The magnetic attachment technology 'MagSafe' for connecting wireless charging and accessories is also missing.
Despite these performance differences, the price gap between the iPhone 16 (128GB: 1.25 million won) and the iPhone 16e (128GB: 990,000 won) is only 260,000 won.
◇ No price difference when including public subsidies for the iPhone 16
On the 28th, SK Telecom set the public subsidy for the iPhone 16e (128GB) at 45,000 won (for the monthly 30,000 won rate plan) to 138,000 won (for the monthly 120,000 won rate plan). That day, the public subsidy for the iPhone 16 (128GB) was announced as between 220,000 and 450,000 won. The difference in public subsidy between the two devices is 175,000 won for the 30,000 won rate plan and 312,000 won for the 120,000 won plan. An official from a mobile carrier said, “The price difference between the iPhone 16 (128GB) and the iPhone 16e (128GB) is 260,000 won. As public subsidies lean toward the iPhone 16, the price gap between the devices has nearly disappeared,” and noted, “For high-tier plan users, buying the iPhone 16 is more than 50,000 won cheaper than the iPhone 16e.”
The public subsidy for the iPhone 16e (128GB) varies by mobile carrier and plan, ranging from a minimum of 45,000 won to a maximum of 250,000 won. The iPhone 16 (128GB) is offered with a public subsidy ranging from a minimum of 183,000 won to a maximum of 550,000 won. A mobile retail worker said, “Using only the 60,000 to 70,000 won rate plan means there is practically no price difference between the iPhone 16e and the iPhone 16,” and added, “When selling it as a used phone later, the iPhone 16, being a standard model, will have a higher price, so I recommend buying the iPhone 16.”
◇ In some rebate stores, the subsidy for the ‘iPhone 16’ is 1.2 million won... the ‘iPhone 16e’ is 430,000 won
In some retail outlets such as Sindorim Technomart, additional subsidies (rebates) beyond the public subsidies have emerged. An employee of a mobile retail outlet said, “For the iPhone 16 (128GB), under the condition of using a 100,000 won rate plan for six months without changing numbers, a public subsidy of 500,000 won is combined with an additional subsidy of 400,000 won, offering a total support of 900,000 won. If the number is transferred to another carrier, the additional subsidy rises to 700,000 won, totaling 1.2 million won.” They added, “This means you could buy the iPhone 16, priced at 1.25 million won, for only 50,000 won.”
In contrast, the iPhone 16e has received very little additional subsidy. It has a lower public subsidy than the iPhone 16, and even stores offering rebates do not provide significant additional support. Under the same conditions, the iPhone 16e saw a maximum of 200,000 won in additional subsidies. Combining the public subsidy of 230,000 won with the additional subsidy of 200,000 won, total support reached 430,000 won. This means the iPhone 16e, priced at 990,000 won, could be purchased for 560,000 won.
◇ Concerns about price increases for the ‘iPhone 16’ if the ‘iPhone 16e’ fails to perform
Apple advertised the iPhone 16e as a product with 'amazing value' on its website, but criticisms labeling the price as 'an incredible mistake' have surfaced in online communities. Industry insiders suggested, “The price point of the budget iPhone model has lost its appeal,” and predicted, “It will be difficult for the iPhone 16e to succeed in the domestic market due to its high price.”
The domestic release price of the previous model, the iPhone SE3 (128GB), is 649,000 won. Apple set the domestic release price for the new product at 990,000 won, marking a 52.5% increase compared to the previous model. In dollar terms, the price of the iPhone 16e has risen by about 40% compared to its predecessor, but in Korea, the price has increased by more than 10 percentage points. The industry estimates that Apple calculated the exchange rate for setting the domestic iPhone release price at around 1,500 won per dollar. On the public release date of the iPhone 16e, the exchange rate in Korea was 1,436 won per dollar.
Some in the industry say that if the iPhone 16e fails to perform well in South Korea and consumer demand shifts toward the iPhone 16, Apple may adjust the domestic price of the iPhone 16. This is because the exchange rate when determining the domestic release price of the iPhone 16 last year was around 1,300 won per dollar. Shin Hyun-doo, president of the Korea Consumers Association, said, “In recent years, Samsung has been releasing the Galaxy series at lower domestic prices than overseas markets, while Apple seems to have a tendency to set higher domestic prices,” and added, “If Apple raises the price of the iPhone 16 because the iPhone 16e does not sell well, it would be a behavior that mocks Korean consumers.”