On Wednesday, Apple revealed a new and cheaper version of the iPhone 16, called the iPhone 16e. This move shows that the tech company is once again focusing on the budget smartphone market. The iPhone 16e is also the first Apple phone to include a cellular modem designed by Apple itself. Additionally, it is the most affordable iPhone that supports Apple Intelligence, the company’s artificial intelligence (AI) system.
Price and Release Date
Apple has set the price of the iPhone 16e at $599, making it a more budget-friendly option compared to the standard iPhone 16 models. The device is scheduled for release on February 28.
By bringing Apple Intelligence to a lower-cost phone, Apple aims to make AI tools available to more users. The company has been facing tough competition from rivals like Google and Samsung, both in the budget smartphone segment and in AI technology. Google’s Pixel A-series phones, which are more affordable, have gained popularity. Additionally, Google and Samsung have both focused on updating their devices with AI-powered features over the past year.
A Shift Away from the iPhone SE
This new launch suggests that Apple is moving away from the iPhone SE series, which was introduced in 2016 as a budget-friendly alternative. The last update to the SE model came in 2022, but it never accounted for a large share of Apple’s sales. According to Consumer Intelligence Research Partners, the iPhone SE made up only 5% of iPhone sales in the U.S. as of December 2024.
Although the iPhone 16e costs more than the SE, it may attract more customers who want a device with a modern design and up-to-date features. The iPhone SE was the last model to include a physical home button and fingerprint sensor on the front, features that Apple began phasing out with the release of the iPhone X in 2017.
Apple CEO Tim Cook hinted at this new release on February 13 through a social media post. In his message, he referred to the iPhone 16e as a “new member of the family”, confirming its official announcement on February 19.
What Makes the iPhone 16e Special?
Apple has highlighted several key features that make the iPhone 16e stand out. One of the most significant updates is its new 5G modem, which the company claims is the “most power-efficient modem ever” in an iPhone.
This modem is particularly important because it marks Apple’s shift toward using its own hardware. Apple acquired Intel’s smartphone modem business in 2019, and since then, the company has been working on developing its own modems. By doing so, Apple is reducing its dependence on third-party suppliers and gaining greater control over its products.
A Modern Design and Updated Features
The iPhone 16e represents a major upgrade compared to previous budget models. Before this launch, Apple’s cheapest option was the $429 iPhone SE, but that model was based on the iPhone 8 design from 2017. It lacked modern features such as Face ID and a nearly bezel-free display.
Following the announcement of the iPhone 16e, Apple has officially removed the iPhone SE from its online store, signaling the end of the SE line.
Unlike the outdated SE, the iPhone 16e shares many features with the iPhone 16. It comes with a 6.1-inch display, Face ID, a 48-megapixel camera, and the Action button, which allows users to program shortcuts for quick access to different functions.
However, Apple has made a few compromises to keep the price lower. Unlike the standard iPhone 16, the iPhone 16e does not have a second rear camera for capturing wide-angle shots. Additionally, it lacks the Camera Control button, which provides faster access to the camera.
Despite these differences, the iPhone 16e runs on the same powerful processor as the rest of the iPhone 16 series, ensuring it can fully support Apple’s latest software and features.
Apple Intelligence Comes to a More Affordable iPhone
Until now, Apple Intelligence was only available on a limited number of Apple devices, including the iPhone 16 series, iPhone 15 Pro models, and certain iPads and Macs. The term Apple Intelligence refers to a collection of AI-powered features designed to enhance user experience.
Some of these AI features include:
- Custom emoji and image generation using text prompts
- Automatic notification summaries
- The ability to remove unwanted objects from photos
- ChatGPT integration with Siri for smarter virtual assistant interactions
Apple’s Late Entry into AI
AI technology has been rapidly transforming the tech industry. When ChatGPT was introduced in late 2022, it changed the way people interacted with AI. Companies like Microsoft, Google, and Samsung quickly began integrating AI-powered tools into their products.
However, Apple was initially slower to adopt AI features in a visible way. The company has been using AI behind the scenes for years, such as in camera enhancements and voice recognition, but it only started actively promoting Apple Intelligence in the fall of 2024.
Now, by bringing Apple Intelligence to a more budget-friendly device like the iPhone 16e, Apple is signaling that AI will play a central role in its products moving forward.
Can AI Drive iPhone Sales?
Many tech giants view AI as the next major shift in technology, changing the way people use their devices. Companies are betting on AI-powered features like chatbots and automation tools to enhance user experience.
However, it is still uncertain whether AI alone will be enough to drive new smartphone sales. Apple’s iPhone sales fell below Wall Street expectations in the first quarter of 2025. This suggests that many consumers may not see AI as a must-have feature just yet.
Despite this, Apple is investing heavily in AI, ensuring that its future devices remain competitive. The launch of the iPhone 16e is a step toward bringing advanced technology to more people at a lower price.
Conclusion
With the introduction of the iPhone 16e, Apple is making a strategic move into the budget smartphone market while also expanding the reach of Apple Intelligence. The new phone comes with a modern design, a powerful processor, and AI features, making it an attractive option for users who want a more affordable iPhone without sacrificing too much on performance.
Although it lacks some advanced camera features, the iPhone 16e retains the core experience of the iPhone 16 at a lower price. By offering AI-powered tools on a budget-friendly device, Apple is making it clear that AI will be a key part of the iPhone experience in the years ahead.
With its launch set for February 28, the iPhone 16e will soon be available to consumers looking for a balance between affordability and cutting-edge technology.
