Apple Introduces Affordable iPhone 16e, Bringing AI Features to Budget-Friendly Options – One America News Network
By Stephen Nellis and Akash Sriram
February 19, 2025 – 8:23 AM PST
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(Reuters) – On Wednesday, Apple (AAPL.O) introduced its newest budget-friendly variant, called the iPhone 16e, aiming to capture a larger share of the mid-range smartphone segment amidst stiff competition from Samsung (005930.KS) and China’s Huawei.
This fresh model departs from the SE designation within Apple’s budget lineup and aims to compete against popular Android devices at a time when tech companies are increasingly integrating artificial intelligence features into their products.
With a retail price of $599, the iPhone 16e is engineered with sufficient computing power to support Apple Intelligence, a suite of features that includes built-in access to ChatGPT.
Last month, Apple projected robust sales growth, indicating a recovery from a decline in iPhone sales as it expands artificial intelligence functionalities across more regions and languages.
Nonetheless, analysts remain cautious regarding the potential sales increase from such features, as these AI enhancements are set to be rolled out in phases across various regions within the latest iPhone 16 lineup and the iPhone 15 Pro model.
According to Counterpoint Research, the proportion of SE model sales relative to total iPhone revenue has plummeted from 10% at its launch in 2016 to merely 1% last year.
“Apple can leverage the lower-priced smartphone in markets where Android holds a larger share without compromising too significantly on its premium iPhone sales,” explained Gil Luria, a DA Davidson analyst.
Powered by the A18 chip found in the pricier models released last September, the iPhone 16e will natively support Apple Intelligence features.
This model will be approximately $200 cheaper than the entry-level iPhone 16, which debuted in September.
Additionally, the iPhone 16e will be the inaugural device from Apple to incorporate the C1 chip, representing the company’s first in-house designed modem for cellular connectivity, marking a departure from previous use of Qualcomm (QCOM.O) chips.
The new device boasts a 48-megapixel camera system with dual lenses, one of which is a two-times zoom lens integrated into the primary camera.
Unlike earlier SE models that featured smaller displays and catered to a niche audience, the latest version sports a 6.1-inch screen, identical to the least expensive version of the iPhone 16.
This year’s highly anticipated update includes modifications to the design, removing the physical home button in favor of Apple’s FaceID technology.
Apple announced that the iPhone 16e will be open for pre-orders in 59 countries, including the U.S., China, and India, starting February 21, with shipments expected to commence on February 28.
The SE model will also be the last among iPhones to transition to a USB Type-C charging port, moving away from Apple’s proprietary Lightning connector, thereby allowing companies to re-enter the European Union market.
Apple had previously halted the third-generation SE model and iPhone 14 in the EU due to non-compliance with local regulations mandating USB Type-C charging standards.
Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur
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