On Wednesday, Apple introduced the iPhone 16e, a more budget-friendly addition to its iPhone lineup, traditionally refreshed in September. This new model is set to retail for $599 and will be available later this month.
The iPhone 16e boasts a modern design, replacing the conventional home button and fingerprint sensor with Apple’s FaceID technology and a screen notch. It is powered by the A18 chip, the same processor found in the standard iPhone 16 models, ensuring that it can handle all the same applications and games as its pricier counterparts. The device is available in matte black and matte white.
This phone also marks the debut of Apple’s own cellular modem, called the C1, moving away from the Qualcomm modems used in previous iPhones. Unlike the higher-end iPhones, which can have up to three lenses, the iPhone 16e features a single camera lens.
The release of this lower-cost iPhone comes as Apple aims to stimulate growth in its most critical product category, following mixed sales results in recent quarters. Despite a 1% year-over-year decrease in overall iPhone sales during the December quarter, Apple still generated over $69 billion in revenue from phone sales.
These more affordable iPhones are crucial for attracting new users to Apple’s ecosystem. The iPhone 16e supports Apple Intelligence, making it the most affordable new iPhone with access to features like image generation and notification summaries.
The current iPhone lineup includes the iPhone 16, starting at $799, and the iPhone 16 Pro, starting at $999. Before this launch, Apple Intelligence was limited to the iPhone 16 and iPhone 15 Pro models.
Since 2016, Apple has been offering less expensive iPhone models to complete its product range. These models, initially known as the iPhone SE, received updates in 2020 and 2022. The iPhone SE typically featured a recycled design from older models but included updated components like the processor to ensure ongoing software compatibility.
With the discontinuation of the previous iPhone SE, fingerprint scanners will no longer be a feature in new iPhone models. The iPhone 16e is priced higher than the iPhone SE, which was originally sold for $429.
Apple has increasingly adopted a quieter approach, introducing products through press releases, similar to the Mac announcements last September. This approach may be an experiment to assess the level of excitement generated by these less public launches.