Apple has introduced the iPhone 16e, a sleeker, more expensive version of its entry-level smartphone, to expand its audience and integrate cutting-edge artificial intelligence technology into a more affordable device.
Unveiled on Wednesday, the iPhone 16e significantly evolved from Apple’s previous budget-friendly models, previously branded as the iPhone SE. The latest iteration brings advanced AI capabilities, a larger display, and a higher price tag—a strategic move as Apple seeks to balance accessibility with profitability.
The iPhone 16e will retail at $600, a 40% increase from the $430 price of the last iPhone SE, released in 2022. Despite the jump, it remains more affordable than the standard iPhone 16, which starts at $800. Pre-orders for the new model begin Friday, with the device officially hitting stores on 28 February.
For the added cost, consumers will get a more powerful battery, an upgraded camera, and AI-driven features similar to those found in the premium iPhone 16 lineup, which was launched in September 2023. These AI tools include automatic text and audio summarisation, on-the-fly emoji generation, and an improved Siri virtual assistant.
Apple’s decision to introduce a more AI-integrated, budget-conscious model underscores its effort to attract more users to its ecosystem while maintaining the exclusivity of its high-end products.
“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,” said Dipanjan Chatterjee, an analyst at Forrester Research.
Apple executive Kaiann Drance highlighted the company’s excitement for the new device, saying, “We’re so excited for iPhone 16e to complete the lineup as a powerful, more affordable option to bring the iPhone experience to even more people.”
Despite Apple’s strong push into artificial intelligence, its “Apple Intelligence” suite of AI features has yet to be fully rolled out. While the company has been promoting its AI ambitions since June 2023, many features remain unavailable in certain regions.
Apple’s biggest challenge is in China, where the company has struggled against local competitors and has not yet provided a timeline for its AI rollout. However, a recent partnership with Alibaba could accelerate the integration of AI into Apple devices in China by spring 2024.
In addition to its AI features, the iPhone 16e also receives a notable design update. The new model features a 6.1-inch display, a significant jump from the 4.7-inch screen on the previous SE models. Apple has also removed the home button, opting instead for Face ID authentication, aligning the budget-friendly device with its premium counterparts.
The launch of the iPhone 16e comes at a crucial time for Apple, as it looks to boost iPhone sales, which saw a slight dip during the holiday season. While the company’s stock price edged higher on Wednesday, closing at $244.87, it remains below its peak of $260, which it reached in December 2023.