Apple Unveils iPhone 16e, a Budget AI-Powered Smartphone for US$599
Apple has introduced the iPhone 16e, a budget-friendly smartphone with artificial intelligence, aiming to attract mid-market customers in key regions such as China and India.
The iPhone 16e, launched on Wednesday, moves away from the SE branding and is designed to compete with Android devices from Samsung and Huawei, which have also integrated AI features.
Priced at USD 599, the 16e is USD 170 more expensive than the previous SE model but includes a powerful chip to support Apple Intelligence, which provides access to ChatGPT. The phone closely resembles Apple's flagship models, except for the absence of a wide-angle camera lens, one missing button, and a slightly different display.
Apple's stock remained largely unchanged following the announcement. The company recently projected strong sales growth, expecting iPhone sales to rebound as AI features expand to more regions and languages. However, analysts have noted that the rollout has been slow, and Apple has yet to confirm a data partner in China for its AI services.
Forrester principal analyst Dipanjan Chatterjee said the new phone lowers the cost barrier for users looking to adopt Apple Intelligence, despite a general reluctance among existing customers to upgrade.
According to Counterpoint Research, the SE model's share of total iPhone revenue has declined from 10% in 2016 to about 1% in 2023. Ben Bajarin, principal analyst at Creative Strategies, said the 16e could appeal to cost-conscious buyers in Europe and China, where customers often pay for phones upfront.
The iPhone 16e is powered by the A18 chip, the same processor used in Apple's premium models launched in September 2024. It will support Apple Intelligence from launch and will be available in black and white, unlike the standard iPhone 16, which comes in multiple colours.
The 16e is also the first Apple device to feature the C1 chip, the company's in-house modem for cellular connectivity, marking a shift away from Qualcomm chips.
The iPhone 16e features a 48-megapixel sensor with two lenses, including a two-times zoom lens integrated into the primary camera. However, it lacks the wide-angle lens found in more expensive models.
Unlike the flagship iPhone 16 models, which have a screen that surrounds the front-facing camera, the 16e retains a notch at the top of its display. It also omits the camera control button available on higher-end versions.
While previous SE models were known for their smaller screens, the 16e has a 6.1-inch display, matching the base iPhone 16 model. The device also eliminates the SE's physical home button, replacing it with Apple's Face ID technology.
The iPhone 16e will be available for pre-order in 59 countries, including the U.S., China, and India, starting 21 Feb., with shipments beginning on 28 Feb.
The SE model was the last iPhone to use Apple's proprietary Lightning connector. With the 16e adopting the USB Type-C port, Apple can now return to the European Union market, where regulations require the universal charging standard.
Apple had previously discontinued the third-generation SE model and iPhone 14 in the EU due to non-compliance with these regulations.
Apple launched the iPhone 16e, a budget AI-powered smartphone, for USD 599.
The device features the A18 chip, Apple Intelligence, and the company's first in-house modem, the C1 chip.
It lacks a wide-angle camera lens and a camera control button but includes a 48-megapixel sensor with a two-times zoom lens.
Source: REUTERS