According to leaks from Digital Chat Station, the iPhone 17e is expected to feature the same display as the iPhone 16 while supporting Dynamic Island functionality. The rear camera will remain a 48-megapixel single-lens setup, powered by the A19 processor.

The configuration strategy will likely mirror that of the iPhone 16e - featuring one fewer CPU core than the standard version and two fewer cores than the Pro version, maintaining Apple's strict product hierarchy.

However, compared to the iPhone 16e, the iPhone 17e will finally abandon the notch design and no longer restrict Dynamic Island as a product tier differentiator. This change appears to stem from Apple's successful "market experiment" with the iPhone 16e, leading the company to generously extend Dynamic Island functionality to attract more users.

Before the iPhone 16e launch, most people expected this single-camera notch-screen device to be named iPhone SE4, with many believing it would retain the iPhone XR's design and LCD display. No one anticipated the final iPhone 16e naming and completely new body molding. Even when searching for "SE4," encyclopedia entries still associate it with the iPhone 16e, as the public perception links Apple's budget-friendly phone series with the SE naming convention.

The SE series stands for Special Edition, characterized by "new wine in old bottles": the original used the iPhone 5s body with the iPhone 6s's A9 chip, while the third generation employed the iPhone 8 body with the iPhone 13's A15 Bionic chip. By reusing existing body modules to significantly reduce costs, the SE series has consistently represented the "cheapest iPhone" in consumer perception.

The e-series positioning differs from the SE series. The e-series functions as a Lite version, exemplifying Apple's "precise surgical cuts": reducing chip, display, and camera specifications while increasing battery capacity. This ensures the e-series doesn't exceed its tier while maintaining good basic user experience and continuing the "cheapest iPhone" positioning.

The iPhone 16e represents Apple's exploration of the mid-range market, similar to the previously launched Plus version that attempted to attract users with large screens using standard version configurations. However, the removal of the Plus version from the iPhone 17 series indicates this market experiment clearly failed.

If the e-series doesn't generate expected revenue for Apple, it could be replaced by other product lines at any time. Currently, launching the e-series not only fills the value-proposition gap in the product line but also serves as the preferred upgrade choice for older model users.

The e-series carries an important mission - retaining iPhone legacy users, which is one of the key reasons for its introduction. Apple's "holdout" user numbers far exceed expectations. For instance, the iPhone XR, released in 2018, still has considerable user discussion in communities today.

These legacy users, whether due to iOS system preference or economic constraints preventing phone upgrades, though often overlooked, represent a substantial population. Apple recognizes this reality. On the Apple website, the iPhone 16e's comparison targets aren't the 15 or 14 series, but earlier released models.

The oldest among these is the iPhone 11, released on September 11, 2019, nearly six years ago. For these users, the iPhone 16e's criticized "inferior configuration" represents exactly what they want to upgrade to. Apple's precise strategy has indeed helped iPhone 16e achieve expected sales.

Market research firm CIRP's latest report shows the iPhone 16e accounted for 11% of US iPhone sales in June 2025 - notably, the similarly positioned SE3 held only 5% market share during the same period. Global sales have exceeded 7.15 million units.

This significant improvement demonstrates the e-series strategy's viability. User experience feedback reveals most iPhone 16e buyers chose this device for its large battery capacity, slim profile, and minimal camera requirements. Users directly state that despite reviewer criticisms about missing MagSafe and mediocre configuration, it doesn't affect actual user choice, with sales data confirming the iPhone 16e as a popular product.

Some iPhone 16e purchasers previously used older models like the iPhone 12, confirming the earlier viewpoint: this phone truly serves as Apple's "gift" to holdout users.

However, iPhone 16e domestic sales fell short of Apple's expectations at only 171,000 units, less than 3% of global sales. Why do identically configured models show such dramatic sales differences between domestic and international markets?

Several key reasons explain this disparity:

Currently, after subsidies, the iPhone 16e's 128GB version costs 3,798 yuan with maximum coupons applied, positioning it precisely within the domestic Android flagship standard version price range - the most competitive segment with the most available options.

A comparison of major domestic manufacturers' flagship standard versions with the iPhone 16e across imaging, display, battery life, and memory reveals significant hardware gaps. Particularly in imaging configuration, domestic manufacturers' models generally support optical zoom and macro functionality.

In today's domestic phone market, devices at this price point must satisfy most user imaging needs, while the iPhone 16e's extreme single-camera design inevitably falls behind in parameter comparisons. Additionally, 120Hz displays, large-capacity batteries, fast charging, and 256GB starting storage represent areas where Apple currently cannot compete.

Price-wise, the iPhone 16e emerges as the most expensive option among comparable devices, creating a "bringing a knife to a gunfight" situation.

Most concerning for Apple should be domestic Android phones gradually replacing iPhone's position. In late 2024, domestic phones launched a wave that users describe as "forcibly compatible with Apple," meaning forced compatibility with Apple's ecosystem.

Starting with domestic phones supporting Live Photo, manufacturers gradually infiltrated Apple's ecosystem. The vivo X200S launched with the slogan "strongest Apple replacement," offering direct iPhone message and call reception, one-touch file transfer, Apple Watch and AirPods connectivity with battery display on the phone.

HyperOS 2.0 updates enabled Xiaomi phones to achieve rapid file transfer and screen mirroring with Mac computers. Even AirDrop functionality can be replicated through Xiaomi's interconnection service app with higher transmission efficiency, with recent updates supporting Mac direct use of Xiaomi phone screens.

Similarly, ColorOS 15 began supporting iPhone's one-touch transfer functionality. Domestic manufacturers are openly competing for iPhone's position within Apple's ecosystem.

This represents a very smart approach: Apple's ecosystem deployment has highly integrated tablets, laptops, desktops, and headphones with iPhone, forcing users with these devices to choose iPhone while making complete device replacement unrealistic.

Therefore, domestic manufacturers' strategy involves hardware superiority plus software adaptation to replace iPhone's "controller" status in the ecosystem while offering more price concessions, enabling seamless device switching for many iPhone users.

This represents a key reason for iPhone 16e's poor domestic sales performance. Additionally, Apple AI's delayed domestic deployment prevents Apple from playing its final card. Originally, the iPhone 16e as a value device should have become the cheapest Apple AI entry point, but plan delays prevented this goal realization.

Furthermore, rapid domestic phone AI experience development, including one-tap screen recognition, AI photo albums, and AI assistants, has created irreplaceable user habits. With insufficient hardware and non-competitive software, the iPhone 16e naturally became a "casualty" in market competition.

What about the iPhone 17e? The outlook for this model's domestic sales remains pessimistic. According to leaks, the iPhone 17 standard version's display already supports 120Hz high refresh rates, while the "lower-tier" iPhone 17e must follow product hierarchy rules and will likely retain 60Hz displays.

The processor will also face cuts, as will imaging configuration. The iPhone 17e faces restrictions across multiple areas.

Despite price reductions making it currently the cheapest iPhone, facing domestic phones' "software and hardware combined" tactics, even Apple struggles to capture the mid-range market.

However, if Apple AI truly launches domestically, it might attract some users to purchase the iPhone 17e as an Apple AI ecosystem entry point. By then, domestic phone AI functionality may have comprehensively covered all product lines.

Facing these unfavorable factors, will Apple change its strategy? How should the iPhone e-series establish itself in the domestic market?