Apple Unveils iPhone 16e With AI Features and Higher Price \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Apple has launched the iPhone 16e, a sleeker and AI-powered version of its budget iPhone, starting at $600—a 40% price increase over the previous iPhone SE. The device includes a larger screen, facial recognition, and enhanced battery life, while incorporating Apple’s new AI technology. However, AI features are still rolling out, especially in China, where Apple recently partnered with Alibaba to accelerate adoption.
Apple iPhone 16e Unveiled: Quick Look
- Apple revealed the iPhone 16e on Wednesday, featuring AI capabilities and a new design.
- The starting price is $600, up 40% from the previous iPhone SE ($430).
- Features include Apple Intelligence AI, a 6.1-inch display, and facial recognition.
- AI-powered tools summarize text, generate emojis, and enhance Siri’s intelligence.
- Apple hopes to boost sales after recent declines, especially in China.
- The phone will be available in stores on February 28, with pre-orders starting Friday.
- Apple’s stock saw a slight increase, trading at $245 on Wednesday.
Deep Look
Apple has officially unveiled the iPhone 16e, a more sophisticated yet pricier version of its entry-level smartphone, aimed at expanding access to AI-powered technology. The new model, which starts at $600, brings major design changes, including a larger display, facial recognition, and a powerful new chip to support Apple’s growing AI ecosystem.
This marks a shift in Apple’s strategy for its budget-friendly iPhone, with the company trying to balance affordability and profitability while integrating advanced AI capabilities.
iPhone 16e vs. Previous SE Models: A Big Leap
The iPhone 16e is Apple’s fourth-generation lower-priced model, following the previous iPhone SE series. Unlike its predecessors, which aimed to keep costs low by retaining older designs and features, the iPhone 16e makes significant changes:
- Larger 6.1-inch display (compared to the iPhone SE’s 4.7-inch screen).
- No home button, replacing Touch ID with Face ID facial recognition.
- More advanced battery and camera, making it more competitive with higher-end models.
By modernizing the low-cost iPhone, Apple is aiming to widen its audience while ensuring that customers stay within its product ecosystem—potentially leading them to upgrade to more expensive models in the future.
Apple’s AI Push: “Apple Intelligence” Comes to Budget iPhones
A major selling point of the iPhone 16e is its ability to support Apple Intelligence, the company’s AI-driven technology suite. This means users will get access to features that automate text summaries, generate custom emojis, and enhance Siri’s capabilities—all processed on-device with Apple’s newest AI chip.
However, Apple’s AI rollout has been slower than expected, affecting sales. While the company has been promoting its AI vision since mid-2024, full feature availability is still pending in several regions, including China, where Apple faces tough competition from Huawei and other domestic brands.
To speed up AI adoption in China, Apple recently partnered with Alibaba, a move that could bring Apple Intelligence to Chinese iPhones by spring 2025.
The Pricing Strategy: Balancing Affordability and Profitability
The iPhone 16e starts at $600, a 40% jump from the last iPhone SE ($430). However, it remains cheaper than Apple’s standard iPhone 16, which starts at $800.
Apple Vice President Kaiann Drance emphasized that the iPhone 16e is designed to make Apple’s latest technology accessible to a broader audience.
“We’re so excited for iPhone 16e to complete the lineup as a powerful, more affordable option to bring the iPhone experience to even more people.”
However, Apple also has a financial incentive to push customers toward higher-end models. According to Forrester Research analyst Dipanjan Chatterjee, Apple faces a challenge with lower-priced iPhones:
“The problem with a lower-end product in a luxury portfolio is that you want it to be good, but not so good that it cannibalizes the crown jewels.”
By raising the price and limiting features, Apple ensures that the iPhone 16e remains an entry-level option while encouraging users to consider pricier models for additional premium features.
Why Apple Needs a Sales Boost
Apple has faced declining iPhone sales, particularly during the 2024 holiday season, when demand dipped slightly compared to 2023 levels. The main challenge? China.
- Apple is losing market share to Huawei, which has surged in popularity.
- AI features are still unavailable in China, delaying adoption.
- Apple’s partnership with Alibaba aims to resolve this, but results remain to be seen.
Beyond China, Apple is also under pressure from competitors like Samsung and Google, both of which have aggressively marketed AI-powered smartphones over the past year.
The iPhone 16e is a critical test for Apple’s strategy: Can it convince budget-conscious consumers to buy into Apple’s AI-powered future, while keeping its premium lineup profitable?
Design Changes: A Modern Look for an Entry-Level iPhone
One of the most noticeable changes in the iPhone 16e is its design update. Unlike previous SE models, which kept the classic home button, the iPhone 16e removes it entirely—meaning all navigation will rely on gesture controls and Face ID, just like Apple’s flagship models.
Additional improvements include:
- A stronger battery for extended use.
- An improved camera with better low-light performance.
- A sleek design that aligns with the iPhone 16 lineup.
This modernized look and feature set justifies the price increase, making the iPhone 16e feel less like a “budget” phone and more like a mainstream Apple device.
When and Where to Buy
The iPhone 16e will be available in stores starting February 28. Customers can pre-order the device beginning Friday, giving them a chance to get one of Apple’s most affordable AI-powered phones before launch.
Apple’s Stock Reaction
Apple’s stock saw a modest increase following the iPhone 16e announcement, trading at $245 on Wednesday. However, shares remain below their December 2024 peak of $260, reflecting ongoing concerns about iPhone sales performance.
With Apple betting heavily on AI integration to revitalize demand, the success of the iPhone 16e will be closely watched in the coming months.
