Apple just launched a new budget iPhone! It’s called the iPhone 16e. This is the fourth version of their cheaper model. Apple hopes this phone will attract more people to their AI tech. They want to boost demand for iPhones. This new version looks better but costs a bit more. It’s designed to be more appealing.
The iPhone 16e was shown off on Wednesday. Indeed, it’s the fourth of its kind. These ‘e’ models are always cheaper than regular iPhones. You might remember the older versions, called iPhone SE. The last SE came out in 2022.
Just like the pricier iPhone 16 models from last September, this one has AI. In fact, the iPhone 16e has a fast chip for AI features. It can summarize text and audio for you. Plus, it makes emojis instantly! Siri, the virtual assistant, will be smarter too. Furthermore, expect a better battery and camera.
These new features mean a price bump. The iPhone 16e starts at $600. That’s up 40% from the old iPhone SE’s $430 price. However, it’s still cheaper than the base iPhone 16, which costs $800. You can buy it in stores on February 28th. Pre-orders start this Friday.
Apple faces a tough choice. They want to sell cheaper iPhones to get more customers. At the same time, they want big profits from expensive phones. This is according to analyst Dipanjan Chatterjee from Forrester Research. He says cheap phones in a luxury brand need to be good but not too good. They shouldn’t hurt sales of the high-end models.
Apple has been talking up its AI since last June. Yet, not all AI features are out in the US. Also, some countries don’t even have it yet. These delays in getting “Apple Intelligence” out hurt sales. iPhone sales were down last holiday season compared to 2023. This affected Apple in California.
China is a problem area for Apple. They are losing ground there. Apple hasn’t said when AI will arrive in China. However, they just partnered with Alibaba on AI in China. This deal might bring AI to Chinese iPhones soon, maybe this year.
Besides AI, the iPhone 16e looks different. It has a bigger screen, 6.1 inches now. The old SE was smaller at 4.7 inches. Also, the home button is gone! Like the expensive iPhones, it uses face unlock now.