Does the iPhone need its own MacBook Neo moment?

Apple launched the iPhone 16e last year for $599 – and it’s been a good phone ever since. It was refreshed this year with an A19 chipset, more storage and MagSafe, but for the most part its positioning in the market hasn’t really changed. It’s a decent phone at a decent price.

It sold decently, but it didn’t really appeal to Android users in the same way that the MacBook Neo did to PC users. I think that could change.

There was something magical about the launch of the MacBook Neo earlier this year that was never felt with the launch of the iPhone 16e a year before. As I said earlier, the iPhone 16e is just a decent phone at a decent price. On the other hand, the MacBook Neo is a good laptop at a great price.

The MacBook Neo shattered expectations of what Apple could do, while the iPhone 16e/17e did exactly what you’d expect from Apple. They haven’t been great value, just cheaper iPhones.

If Apple really wanted to break into the Android market, I think they could do something more radical – and John Ternus’ leadership could get us exactly that.

An even cheaper iPhone

Rather than taking a parts approach like the iPhone 16e, I think the iPhone 18e (or perhaps it could be positioned as an iPhone Neo) could be built from the ground up to be a cheaper iPhone, like the MacBook Neo.

Maybe instead of using an old OLED screen, it could use an LCD panel to save on costs. Maybe it would feature Face ID instead of Touch ID, and maybe it would feature a 12MP camera instead of 48MP. It could even feature a smaller 5.8-inch screen to appeal to little phone fans. Instead of an A20 chip, it could feature fewer, perhaps an A18.

I think Apple would still want to keep an aluminum and glass build, but regardless, I think if Apple could figure out how to package a phone at the magic price of $399, it could convince a lot of Android users to switch, especially in markets with weaker economies. In the US, the price of the device doesn’t really matter since most people finance it through some sort of contract with a carrier – but in many places, iPhones are simply too expensive.

In all likelihood, I don’t think this device should necessarily replace the iPhone 18e. It could probably be found below, and both devices would probably still have a clear market. Still, I think it would be incredibly interesting to see Apple take a similar approach to the MacBook Neo in the Android market, just like they did with the PC market.


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