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Apple's more affordable iPhone 16e will bring its AI to more people

Feb 19, 2025 - businessinsider.com
Apple has launched the iPhone 16e, the most affordable model in the iPhone 16 lineup, priced at $599. This new device introduces Apple Intelligence technology, previously available only on higher-end models, making it more accessible to a broader audience. The iPhone 16e is part of Apple's strategy to boost iPhone sales and expand its ecosystem reach, especially in competitive markets like India. Analysts suggest that while the iPhone 16e may cause some sales "leakage" from pricier models, it is unlikely to significantly impact the sales of the Pro and Pro Max models. Instead, it aims to grow Apple's market share as the company shifts towards a services-led growth strategy.

The iPhone 16e features a 6.1-inch display, an in-house cellular modem, the A18 processor, and a USB-C charging port, aligning with Apple's move away from the Lightning port. Preorders begin Friday, with availability starting February 28. The launch comes as Apple's services business continues to perform well, with a 14% revenue increase year over year, reaching $26.3 billion in Q1 FY25. The iPhone 16e serves as an "on-ramp" for consumers seeking the status of owning an iPhone without the higher price tag, potentially reinvigorating iPhone sales after years of struggle.

Key takeaways:

  • Apple launched the iPhone 16e, featuring Apple Intelligence technology, at a starting price of $599.
  • The iPhone 16e aims to expand Apple's ecosystem reach by offering a more affordable entry point into the Apple ecosystem.
  • The launch is part of Apple's strategy to compete more aggressively with entry-level smartphones and grow its market share.
  • The iPhone 16e features a 6.1-inch display, an A18 processor, and a USB-C charging port, marking a shift away from Lightning ports.
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