Apple has unveiled a new iPhone that integrates artificial intelligence (AI) features while being more affordable than its premium models.
The iPhone 16e comes with the same processor as the iPhone 16 and offers similar storage configurations. However, it has lower specifications in other areas, including fewer cameras.
The company has been seeking a breakthrough product to reignite consumer excitement, as iPhone sales declined towards the end of last year. By incorporating advanced AI capabilities into a more budget-friendly device, Apple aims to boost interest, though analysts remain skeptical about how much AI-driven tools will influence sales.
Its name references the iPhone SE series, which launched between 2016 and 2022 and was also positioned as a lower-cost alternative.
Pre-orders for the iPhone 16e will open on February 21 across 59 countries. In the UK, it will be available for £599, making it £200 cheaper than the iPhone 16 but significantly more expensive than the original iPhone SE, which debuted in 2016 at less than half that price.
Industry experts note that this model is one of the most affordable high-performance iPhones currently on the market. The strategy is expected to accelerate AI adoption and strengthen Apple’s presence in the AI sector.
However, some experts question the real value AI features bring to consumers, considering Apple has invested $189 billion (£150 billion) in AI over the past decade.
Meanwhile, tech influencer Marques Brownlee highlighted the iPhone 16e’s new C1 modem as a particularly interesting feature. This marks the first instance of Apple utilizing its own modem technology in an iPhone, moving away from reliance on Qualcomm and Intel for cellular connectivity. The shift helps Apple cut down on licensing costs and aligns with its long-term vision of owning and controlling the technology behind its products.
Apple Intelligence and AI Integration
The conversation surrounding the new iPhone will likely focus on its performance, as it features the same A18 chip found in more expensive models. This allows it to run the same apps and games, with AI integration playing a key role in Apple’s decision.
The company introduced its proprietary AI system, Apple Intelligence, with this lineup, offering new tools for writing, enhanced image editing, and ChatGPT integration within Siri. However, past AI-related issues, such as erroneous AI-generated news alerts, have posed challenges.
Apple emphasizes that the iPhone 16e is designed to support Apple Intelligence, with features like advanced photo editing and improved search capabilities within image libraries.
Other smartphone brands offer similar AI-driven functions, but the iPhone 16e is positioned as the most cost-effective way to access Apple’s AI ecosystem.
Analysts suggest that this device creates a new revenue stream for Apple, particularly in price-sensitive markets like India, where iPhones have traditionally been considered unaffordable for many consumers.
Additionally, Apple is targeting users of older iPhones, encouraging them to upgrade. A comparison tool on the company’s website allows potential buyers to see how the iPhone 16e stacks up against models dating back to 2019.
Experts note that while many existing Apple users have been hesitant to upgrade, the lower price of the iPhone 16e makes it easier for them to transition into Apple’s AI-powered future.