Apple has officially unveiled the iPhone 16e, a more affordable version of the iPhone 16, marking the company’s renewed push into the budget smartphone market. This new model, priced at $599, is set to launch on February 28, 2025. It will be the cheapest iPhone supporting Apple Intelligence.
A key highlight of the iPhone 16e is Apple’s in-house designed cellular modem, making it the first iPhone to feature an Apple-built modem.
iPhone 16e vs iPhone SE: A Shift in Apple’s Budget Strategy
The introduction of the iPhone 16e signifies a shift away from the iPhone SE, Apple’s previous budget iPhone line that debuted in 2016 and last saw an update in 2022.
According to Consumer Intelligence Research Partners, the iPhone SE accounted for just 5% of U.S. iPhone sales as of December 2024, prompting Apple to rethink its budget strategy.
Unlike the SE, the iPhone 16e offers a more modern design, bringing it closer to Apple’s current lineup with a 6.1-inch display, Face ID, and a 48MP camera.
iPhone 16e Features & Specs
The iPhone 16e shares many similarities with the standard iPhone 16, but at a lower price point.
Key Features of the iPhone 16e:
- 6.1-inch display (same as iPhone 16)
- Face ID authentication
- 48MP camera (lacks a second camera for wide shots)
- Action button for custom shortcuts
- Power-efficient 5G modem designed by Apple
- Powered by the same processor as the iPhone 16 lineup
While it lacks the Camera Control button and a secondary wide-angle camera, it retains many premium features. Which makes it an attractive option for budget-conscious buyers.
Apple Intelligence: Bringing AI to More Users
The iPhone 16e is the most affordable iPhone to support Apple Intelligence, Apple’s suite of AI-powered tools. Previously, Apple Intelligence was only available on:
- iPhone 16 series
- iPhone 15 Pro and Pro Max (2023)
- Select iPads and Macs
Apple Intelligence Features Include:
- Generative AI tools for creating emojis and images
- Notification summaries for better organization
- Object removal in photos
- ChatGPT integration with Siri
This move signals Apple’s intent to make AI a core feature of its future products, as it competes with Google and Samsung, both of which have aggressively integrated AI into their devices.
The Future of AI in Smartphones
Since the launch of ChatGPT in late 2022, AI has become a central focus for tech giants like Microsoft, Google, and Samsung. While Apple has long used AI in the background for tasks like photo processing, it has only recently begun rolling out consumer-facing AI features.
By introducing Apple Intelligence on the iPhone 16e, Apple aims to broaden AI accessibility, potentially driving wider adoption of its AI tools. However, with iPhone revenue missing Wall Street expectations in early 2025, it remains to be seen whether AI features will be enough to boost iPhone sales.
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