Apple introduced the iPhone 16e last year at a price of $599 , and it's been a mediocre phone ever since. This year, it's been refreshed with the A19 chipset, more storage, and MagSafe, but its position in the market hasn't really changed. It's still a mediocre phone at a mid-range price.
See also: iFixit disassembles the iPhone 17e

While it's selling well, it hasn't attracted Android users in the same way that the MacBook Neo has attracted PC users. However, that could change.
The launch of the MacBook Neo earlier this year created excitement that was missing when the iPhone 16e was launched. The iPhone 16e is just a mediocre phone at a mediocre price, while the MacBook Neo is a good laptop at a great price.
The MacBook Neo exceeded expectations for what Apple could produce, while the iPhone 16e and 17e are in line with Apple's typical offerings. They haven't offered impressive value, just cheaper iPhones.
See also: iPhone 17e: What changes has Apple brought?

If Apple wants to penetrate the Android market more effectively, it could take a more radical approach under John Ternus. Instead of using a strategy with existing components, as with the iPhone 16e, the iPhone 18e (or possibly an iPhone Neo) could be designed from the ground up as a more affordable option, similar to the MacBook Neo.
For example, it could use an LCD display instead of the older OLED to cut costs. It could feature Face ID instead of Touch ID and a 12MP camera instead of 48MP. Additionally, it could have a smaller 5.8-inch display to cater to compact phone enthusiasts. Instead of the A20 chip, it could use a less powerful A18.
Apple may want to stick with an aluminum and glass build, but if it could offer a phone at an attractive $399, it could convince many Android users to switch, especially in markets with weaker economies. In the U.S., the price of the device is less of a factor as most people finance it through carrier deals, but in many regions, iPhones are simply too expensive.
See also: Apple officially announces iPhone 17e with MagSafe

This new device wouldn't necessarily need to replace the iPhone 18e. It could coexist with it, with the two devices serving different markets. It would be interesting to see Apple take a MacBook Neo-style approach to the Android market, similar to its strategy in the PC market.
