Apple Unveils Cheaper iPhone 16e at $599 with AI Features

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Apple Unveils iPhone 16e at $599, Expanding Affordable Lineup

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Apple has introduced the iPhone 16e, a lower-cost addition to its smartphone lineup, priced at $599. The new model, set to go on sale later this month, is designed to offer premium features at a more accessible price.

The iPhone 16e adopts Apple’s modern design, eliminating the home button and fingerprint sensor in favor of Face ID. It features the A18 chip, the same processor used in the flagship iPhone 16 models, ensuring compatibility with all apps and games available on higher-end devices. The phone, available in black and white, also includes Apple’s first in-house cellular modem, C1, replacing Qualcomm’s modem. However, unlike the Pro models, it comes with a single camera lens.

Apple’s decision to launch a budget-friendly iPhone comes amid mixed sales performance. In the December quarter, iPhone sales declined 1% year-over-year, totaling $69 billion. By offering a more affordable option, Apple aims to attract new users into its ecosystem. The iPhone 16e also supports Apple Intelligence, making it the cheapest iPhone to access AI-driven features like image generation and notification summaries.

Historically, Apple has maintained a budget iPhone option, starting with the iPhone SE in 2016, which received updates in 2020 and 2022. However, with the 16e replacing the SE, Apple is discontinuing iPhones with fingerprint scanners.

Unlike previous high-profile launch events, Apple announced the iPhone 16e through a press release, signaling a shift in its product unveiling strategy. CEO Tim Cook hinted at the launch last week with a social media post stating, “Get ready to meet the newest member of the family.”

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