Apple has introduced a new, more sophisticated version of its most affordable iPhone, aimed at expanding the reach of a suite of artificial intelligence tools that the company hopes will boost interest in its highly lucrative product line.
The newly launched iPhone 16e is the fourth generation of a model priced significantly lower than the standard and premium iPhone offerings. The brand’s previous budget-friendly variants were known as the iPhone SE, with the last iteration released in 2022.
Similar to the iPhone 16 series revealed last September, the iPhone 16e is equipped with an upgraded chip capable of supporting a variety of AI functionalities, including real-time text and audio summaries, the generation of unique emojis, and enhancements to Siri, the virtual assistant. This model will also feature an improved battery and camera capabilities.
These enhancements have led to the iPhone 16e’s starting price being set at $600, marking a 40% increase from the last iPhone SE’s price of $430. Nonetheless, this new phone is still a more affordable option compared to the least expensive iPhone 16, which retails at $800. Consumers can expect to find the iPhone 16e in stores starting February 28, with pre-orders available from this Friday.
“We’re thrilled that iPhone 16e will enrich our lineup as a powerful yet more budget-friendly choice, extending the iPhone experience to a broader audience,” stated Kaiann Drance, an Apple vice president responsible for reinforcing a product category that represents more than half of the firm’s revenue.
Despite Apple’s enthusiastic promotion of its AI initiatives since last June, the complete suite of features remains unreleased in the United States, and access is still unavailable in certain global regions.
The rollout delays associated with the iPhone’s AI, referred to as “Apple Intelligence,” impacted sales during the recent holiday period, as there was a slight decline in sales compared to 2023 figures.
Apple has faced particular challenges in China, where there has been no announcement regarding when the iPhone’s AI will be made accessible. However, the company has recently established a partnership with Alibaba in China, which may facilitate the availability of this technology on iPhones in that region by spring.
In addition to offering its first foray into AI, the iPhone 16e showcases a fresh design compared to previous SE models. It features a 6.1-inch display, which is slightly larger than the 4.7-inch screen found on the SE model, and it no longer includes a home button. This new device will utilize facial recognition technology for unlocking, similar to the premium models.
Following the announcement on Wednesday, Apple’s shares saw a modest increase during late morning trading, approaching $245, although this remains beneath the stock’s peak of around $260 attained in late December.
