Apple has launched a more stylish and pricier iteration of its most affordable iPhone, aiming to attract a broader audience to a collection of artificial intelligence features that the company hopes will stimulate interest in its most lucrative product range.
The iPhone 16e, announced on Wednesday, marks the fourth generation of a device priced significantly lower than Apple’s standard and premium offerings. The earlier budget-friendly models were branded as iPhone SE, with the last release dating back to 2022.
Similar to the higher-end iPhone 16 series revealed in September, the iPhone 16e is powered by an advanced chip that enables a variety of AI functionalities. These capabilities allow for automatic text summarization, audio processing, and the creation of spontaneous emojis, along with enhancements to Siri, Apple’s virtual assistant. Additionally, it features an upgraded battery and camera system.
As a result of these enhancements, the starting price for the iPhone 16e is set at $600, reflecting a notable increase of 40% from the previous SE model, which was priced at $430. Nevertheless, the new model remains more economical than the base iPhone 16, which starts at $800. The 16e will be available for purchase in stores beginning February 28, with pre-orders opening this Friday.
Kaiann Drance, an Apple vice president who oversees the marketing of this product line—which contributes to over half of the company’s revenue—expressed enthusiasm: “We’re thrilled to introduce the iPhone 16e as a powerful yet affordable option to extend the iPhone experience to a wider audience.”
Even though Apple has been promoting its advancements in AI since last June, many features have yet to be fully available in the U.S., and some regions worldwide still lack access.
These setbacks in deploying what is termed “Apple Intelligence” through free software updates have impacted Apple’s performance, with holiday sales witnessing a modest decline compared to 2023 figures.
Apple has faced particular challenges in China, where no timeline has been provided for the release of iPhone AI capabilities. However, a recent collaboration with Alibaba may facilitate the integration of this technology into iPhones within China as soon as this spring.
The iPhone 16e also presents a refreshed design compared to prior SE models. It features a 6.1-inch display, larger than the 4.7-inch screen found on the previous SE version, and eliminates the home button, adopting facial recognition for unlocking the device—similar to higher-end models.
In the meantime, Apple’s stock saw a slight uptick during late morning trading on Wednesday, nearing $245, which is still below its peak of about $260 reached in late December.
