Apple's iPhone 16e has failed to make significant inroads against Android competitors, unlike the successful MacBook Neo in the PC space. Industry observers suggest Apple could create an iPhone Neo positioned more aggressively on price while maintaining quality, potentially targeting the $399 price point to convert Android users.

The hypothetical iPhone Neo would likely feature cost-saving measures like an LCD display instead of OLED, a 12MP camera, and an A18 chip, while still retaining aluminum and glass construction. This approach mirrors Apple's MacBook Neo strategy of delivering good products at great prices, particularly appealing in markets where iPhones are currently considered too expensive.

Such a device could potentially sit beneath the iPhone 18e in Apple's lineup, giving consumers more options at different price points. The $399 price point could be particularly transformative for Apple's global market share, especially in emerging economies where device cost plays a larger role in purchasing decisions than in the United States where carrier financing dominates.