Apple announced the launch of a new iPhone model, the iPhone 16e, on Wednesday. Priced at $599, it offers a lower-cost alternative to Apple’s flagship iPhones, which typically debut in September. The iPhone 16e will go on sale later this month.
Modern Design and Enhanced Performance
The iPhone 16e boasts a sleek design, eliminating the traditional home button and fingerprint sensor. Instead, it uses Apple’s FaceID scanner and features a sensor notch at the top of the screen. It is powered by Apple’s A18 chip, the same processor found in the main iPhone 16 models, enabling it to run all the latest apps and games. Available in black and white, the phone supports Apple’s latest software capabilities.
Apple’s First In-House Modem
One of the most notable features of the iPhone 16e is Apple’s first in-house cellular modem, the C1, replacing Qualcomm modems used in previous models. The phone comes with a single camera lens, compared to up to three lenses on higher-end iPhones.
Targeting Growth Amid Mixed Sales
The release of the iPhone 16e comes as Apple seeks to boost sales amid mixed performance in recent quarters. In the December quarter, iPhone sales dipped 1% year-over-year, though the company still sold over $69 billion worth of phones. Low-cost models like the iPhone 16e are crucial for attracting new customers to Apple’s ecosystem.
Access to Apple Intelligence
The iPhone 16e supports Apple Intelligence, making it the most affordable model with features like image generation and notification summaries. Previously, only the iPhone 16 and iPhone 15 Pro, starting at $799 and $999 respectively, had access to these capabilities.
A Shift from the iPhone SE
Apple has offered budget-friendly iPhones since the introduction of the iPhone SE in 2016, with updates in 2020 and 2022. Unlike the SE, which reused older designs, the iPhone 16e adopts a modern look while maintaining a lower price point. The iPhone SE, which was priced at $429, will be phased out, marking the end of iPhones with fingerprint scanners.
A New Approach to Product Launches
The iPhone 16e’s release also highlights Apple’s evolving product launch strategy. Traditionally, Apple unveiled new products at live events, but since 2020, the company has shifted to pre-recorded marketing videos. Recently, Apple has been experimenting with quieter launches through press releases, as seen with new Macs announced last September.
Ahead of Wednesday’s launch, Apple CEO Tim Cook teased the release on social media, stating, “Get ready to meet the newest member of the family.”
