Apple has unveiled the iPhone 16e, a revamped and pricier version of its entry-level iPhone, in a bid to expand the reach of its artificial intelligence technology and reinvigorate demand for its flagship product, The Associated Press reports.
The new device, announced Wednesday, marks the fourth generation of Apple’s budget-friendly iPhone, previously known as the iPhone SE, with the last iteration released in 2022.
The iPhone 16e, starting at $600, represents a significant upgrade from its predecessor, the iPhone SE, which retailed for $430. This 40% price increase reflects the integration of a powerful computer chip designed to handle a suite of AI features first introduced in the high-end iPhone 16 lineup last September. These features include automated text and audio summarization, on-the-fly emoji creation, and enhanced capabilities for Siri, Apple’s virtual assistant. Additionally, the new device boasts a more powerful battery and camera.
While more expensive than its predecessors, the iPhone 16e remains a more affordable option compared to the standard iPhone 16, priced at $800. Pre-orders begin this Friday, with the device hitting store shelves on February 28.
“The problem with a lower-end product in a luxury portfolio is that you want it to be good but not so good as to cannibalise the crown jewels,” explained Forrester Research analyst Dipanjan Chatterjee, highlighting Apple’s delicate balancing act between attracting new customers with a budget-friendly option and maximizing profits from its premium devices.
The launch comes as Apple faces pressure to expand the availability of its “Apple Intelligence” AI features, which have been subject to delays in the US and remain unavailable in some parts of the world. These delays, coupled with softening sales in China, contributed to a slight dip in iPhone sales during the recent holiday season.
The company has recently forged an AI partnership with Alibaba in China, potentially paving the way for the technology to be integrated into iPhones in that country within the first half of the year.
Beyond its AI capabilities, the iPhone 16e boasts a modern design. It features a larger 6.1-inch display, a significant increase from the 4.7-inch screen on the iPhone SE, and eliminates the traditional home button. Like its higher-priced counterparts, the new model includes facial recognition for unlocking the device.
