Apple on Wednesday announced a cheaper new version of the iPhone 16 called the iPhone 16e, signaling a renewed push into the budget smartphone market for the tech giant.
It’s also the first iPhone with a cellular modem designed by Apple, and the cheapest iPhone Apple currently sells that supports Apple Intelligence.
The iPhone 16e costs $599 and launches on February 28.
Adding Apple Intelligence on a cheaper iPhone could be crucial for putting the company’s AI tools in the hands of more consumers.
Apple has faced increased competition from Google and Samsung in recent years, both in the budget smartphone market and in the AI space.
Google’s cheaper Pixel A-series of phones have been well received, for example, and both Google and Samsung have prioritized updating Android devices with new AI features over the last year.
The iPhone 16e, despite being more expensive than the SE, could be more appealing to those who want a device that feels more like Apple’s more recent phones.
Apple CEO Tim Cook teased the launch in a social media post on February 13, saying a new “member of the family” would arrive on February 19.
Apple claims the new 5G modem in the iPhone 16e is the “most power-efficient modem ever on an iPhone.”
Unlike the iPhone SE, the iPhone 16e has a lot in common with the iPhone 16, bringing it up to speed with Apple’s current lineup. Both phones have a 6.1-inch screen, Face ID, a 48-megapixel camera and the Action button for programming shortcuts.
However, the iPhone 16e is cheaper and it lacks a dedicated second camera for capturing wider shots and the Camera Control button for quickly accessing the camera.
It’s powered by the same processor as the rest of the iPhone 16 lineup, enabling it to run Apple Intelligence.
Apple Intelligence, which until now has only been available on the iPhone 16 family, 2023’s iPhone 15 Pro and Pro Max and certain iPads and Macs, is a blanket term that refers to a handful of AI-powered tools – such as the ability to generate emojis and images with a prompt, summarize notifications, and remove objects from photos as well as ChatGPT integration with Siri.
