Apple launches the iPhone 16e, a cheaper new version of the iPhone 16

People walk by an Apple store at the Westfield UTC shopping center on January 31 in San Diego, California. (Kevin Carter/Getty Images North America/Getty Images via CNN Newsource)

Apple on Wednesday announced a cheaper new version of the iPhone 16 called the iPhone 16e, signalling a renewed push into the budget smartphone market for the tech giant.

It’s also the first iPhone with a cellular modem designed by Apple, and the cheapest iPhone Apple currently sells that supports Apple Intelligence.

The iPhone 16e costs US$599 and launches on February 28.

Adding Apple Intelligence on a cheaper iPhone could be crucial for putting the company’s AI tools in the hands of more consumers. Apple has faced increased competition from Google and Samsung in recent years, both in the budget smartphone market and in the AI space.

Google’s cheaper Pixel A-series of phones have been well received, for example, and both Google and Samsung have prioritized updating Android devices with new AI features over the last year.

The launch also marks a shift away from the iPhone SE, the budget iPhone line Apple debuted in 2016 and last updated in 2022.

The iPhone SE made up only a sliver of Apple’s iPhone market share, according to research firm Consumer Intelligence Research Partners, which reports it accounted for just 5 per cent of US iPhone sales as of December 2024.

The iPhone 16e, despite being more expensive than the SE, could be more appealing to those who want a device that feels more like Apple’s more recent devices.

Apple CEO Tim Cook teased the launch in a social media post on February 13, saying a new “member of the family” would arrive on February 19.

Article written by Lisa Eadicicco, CNN