• The iPhone 16e, priced at $599, includes Apple Intelligence features and the A18 chip but lacks a wide-angle camera lens.
  • It is Apple's first device to feature the C1 modem chip, signaling a shift away from Qualcomm’s cellular chips.

Apple introduced the iPhone 16e, a budget-friendly smartphone equipped with artificial intelligence capabilities.

The device is launched on Wednesday to attract mid-market consumers, particularly in key growth regions such as China and India.

The iPhone 16e moves away from the SE branding traditionally used for Apple’s budget models. Priced at $599, it marks a $170 increase over the previous entry-level SE model but brings features more in line with Apple’s flagship devices.

The phone will include Apple Intelligence, a suite of AI-powered tools that also provides access to ChatGPT.

However, it lacks a wide-angle camera lens, has one fewer button, and features a slightly different display compared to its premium counterparts.

The device will be available in 59 countries starting February 28 and comes in black and white, unlike the iPhone 16 lineup, which offers multiple color options.

Powering the iPhone 16e is Apple’s A18 chip, the same processor used in the iPhone 16 models launched in September 2024.

It is also the first Apple device to feature the C1 modem chip, marking Apple’s transition away from Qualcomm’s cellular chips.

Apple’s move comes amid declining sales of its smartphones, with the budget segment seeing a significant drop in revenue share.

The SE model, which accounted for 10% of iPhone revenue in 2016, contributed only 1% last year, according to Counterpoint Research.

Analysts suggest the 16e could be a strategic tool for Apple in cost-sensitive markets like China and Europe, where consumers often purchase devices outright.

Apple stock showed little movement following the announcement. The company has projected strong sales growth in the coming months, banking on AI features to boost demand, though analysts note the global rollout remains gradual.

Edited By Annette George