Apple introduced the iPhone 16e, its latest budget-friendly smartphone, at a launch event in California on Wednesday. This new model replaces the iPhone SE series and includes a powerful chip designed to support Apple’s advanced AI features.
The company hopes the iPhone 16e will expand its AI ecosystem, attract more users, and drive demand for its high-end models. With a mix of affordability and cutting-edge technology, Apple aims to reach a wider audience.
Upgraded Features and a Higher Price
The iPhone 16e marks the fourth generation of Apple’s affordable lineup, previously known as the SE series. The last SE model was released in 2022.
Like the premium iPhone 16 models introduced last September, the iPhone 16e features a high-performance chip that enables AI-powered text summarization, real-time emoji creation, and an improved Siri assistant. Apple also upgraded the battery and camera for better performance.
These enhancements come with a price increase. The iPhone 16e starts at $600 (€575), which is about 40% higher than the last SE model’s $430 (€412). Despite the increase, it remains more affordable than the standard iPhone 16, which starts at $800 (€767).
Pre-orders for the iPhone 16e begin on Friday, and it will be available in U.S. stores starting February 28.
“We’re excited for iPhone 16e to complete the lineup as a powerful, more accessible option to bring the iPhone experience to even more people,” said Kaiann Drance, Apple’s vice president of product marketing.
AI Expansion and Regional Delays
Apple has focused on AI advancements since last June, but some features are not yet available in certain regions. A slow rollout of AI software updates contributed to a slight dip in iPhone sales during the holiday season compared to 2023.
China has been a major challenge for Apple. The company has yet to confirm when iPhone AI features will be available in the region. However, a new AI partnership with Alibaba could speed up the introduction of AI-powered iPhones in China this spring.
A Fresh Design for Budget iPhones
Beyond AI, the iPhone 16e introduces several design changes. It features a 6.1-inch display, replacing the 4.7-inch screen on older SE models. Apple has also removed the home button, a change that aligns it more with premium iPhones.
The device now supports facial recognition for unlocking, a feature previously limited to Apple’s high-end models. The updated design offers users a more modern smartphone experience at a lower cost.
Apple’s Stock Reaction
Apple shares saw a slight increase on Wednesday, reaching nearly $245 (€235). While the stock remains below its December peak of $260 (€249), investor confidence appears steady following the announcement.
Apple continues to face competition in the budget smartphone market, particularly from Android brands offering AI-powered devices at lower prices. However, the iPhone 16e’s integration into Apple’s ecosystem, along with its AI capabilities, could give it an edge among consumers looking for an affordable iPhone, especially those who rely on it for business and productivity.
With the iPhone 16e launch, Apple reinforces its commitment to AI and accessibility. As AI-powered smartphones become more common, Apple’s success in the budget market may depend on how quickly it expands AI features worldwide.
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