iPhone 16e: Apple Brings AI To A More Affordable Price Point

|Updated at February 27, 2025

Apple launched a new iPhone recently that comes at a lower price than the flagship models that are usually introduced in September. The device is called the iPhone 16e and will retail for $599 later this month.

The iPhone 16e sheds the standard home button and fingerprint sensor in favor of FaceID technology and a sleek design that features a sensor notch at the top of the display. 

The A18 chip found in the higher-end iPhone 16 models powers this phone, making the 16e capable of running any of the apps and games its more expensive siblings can. Users can get the device in classic black and white.

Apple brings iPhone 16e incorporated with AI capabilities at a lower price

Another feature of this model is the first cellular modem designed in-house by Apple, C1, marking a shift from Qualcomm modems used on previous iPhones. However, it has only a single camera lens, unlike the multiple-taken by more advanced models.

With this new budget iPhone, Apple hopes to push its customer footprint back up after recent quarters with mixed sales results. For instance, iPhone unit sales during the December quarter fell by 1% over the same period a year ago. Nevertheless, the company had more than $69 billion in sales from phones.

Thus, budget iPhones carry importance to Apple by getting to pull in new customers into its ecosystem. This iPhone 16e supports Apple Intelligence, making it the most accessible option for benefits such as image generation and summary notifications.

Currently, what Apple has in store is the iPhone 16 which starts at $799 and an iPhone 16 Pro for $999. Since 2016, Apple has presented to its list which also includes the low-cost iPhone model. The first iPhone SE received updates in 2020 and 2022 and has generally incorporated with older designs and allows updated features such as processors to ensure the alignment of ongoing software updates.

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