Apple announced the iPhone 16e on February 19th, 2025, a cheaper version of the iPhone 16, It is priced at $599 and will be available on February 28th.
It’s a big move for Apple to compete in the budget phone market and make AI technology more accessible. This phone is important because it includes Apple Intelligence—AI features previously only on more expensive phones—and uses Apple’s cellular modem for the first time.
What is the iPhone 16e?
The iPhone 16e replaces the older iPhone SE line, which accounted for only about 5% of US iPhone sales by December 2024. The iPhone 16e boasts a more modern and appealing design, similar to other current iPhones.
To keep the price down, it doesn’t have a second wide-angle camera or the dedicated Camera Control button, but it uses the same powerful processor as the iPhone 16, allowing for all the Apple Intelligence features.
Notably, available in black and white, the iPhone 16e is available for pre-order on February 21st, with a February 28th release date. Storage options include 128GB ($599/€699/£599/INR 59,900), 256GB ($699/€829/£699/INR 69,900), and 512GB ($899/€1,079/£899/INR 89,900).
Apple Intelligence, which includes things like creating images from text, summarizing notifications, and removing objects from photos, was previously only available on top-tier Apple devices. Bringing it to a budget phone lets Apple better compete with Google and Samsung, who have already successfully offered similar AI features on their cheaper phones.
Apple’s been a bit slow to join the AI race. While their products have used AI behind the scenes for a while, they only recently, last fall, publicly launched their AI system, Apple Intelligence. Putting it in the iPhone 16e shows Apple sees AI as really important for their future.
The iPhone 16e’s success depends on showing people exactly why its AI features are worth the price. Apple stopped selling the iPhone SE after launching the 16e, which shows they believe the 16e will be a hit and that they’re focusing on AI in their phones.
Smartphone Giants Vies For Dominance
Integrating Apple Intelligence into a more affordable device is a strategic masterstroke, making the company’s AI tools accessible to a broader consumer base. This move is a direct response to intensified competition from Google and Samsung, both vying for dominance in both the budget smartphone and AI sectors. Google’s popular Pixel A-series, for example, highlights the success of budget-friendly AI-powered phones.
This launch also signals the end of the iPhone SE line, a budget offering first introduced in 2016 and last updated in 2022. Consumer Intelligence Research Partners data reveals the iPhone SE’s minuscule 5% US market share (December 2024), highlighting its limited impact.
Furthermore, despite a higher price point than the SE, the iPhone 16e offers a more contemporary Apple experience. Unlike the SE, with its traditional home button and fingerprint sensor – design elements phased out since the iPhone X (2017) – the 16e aligns with the aesthetic of newer iPhones. A February 13th social media post from CEO Tim Cook hinted at the impending launch.
Notably, the iPhone 16e boasts several notable features. Apple touts its new 5G modem as the most energy-efficient ever incorporated into an iPhone. This achievement comes over five years after Apple acquired a significant portion of Intel’s struggling smartphone modem business in 2019. This in-house modem grants Apple greater control over production and launch schedules.
iPhone Discontinue the SE Model
The new model’s name avoids the “lesser” connotation associated with the SE moniker. The iPhone 16e – the “e” possibly signifying “economical” – arrives with a suite of impressive features, foremost among them Apple Intelligence support, a significant upgrade over the iPhone 14. While a single rear camera replaces the dual-camera system, it still boasts lossless 2x zoom capabilities.
The iPhone 16e is a significant upgrade from its predecessor. The $429 iPhone SE, resembling the seven-year-old iPhone 8, lacked essential features like Face ID and a nearly bezel-less screen. Apple removed the iPhone SE from its online store following Wednesday’s announcement.
Powered by the A18 chip, the iPhone 16e features a 6.1-inch Super Retina XDR OLED display with Ceramic Shield protection, and Apple promises record battery life for a 6.1-inch iPhone – six hours longer than the iPhone 11 and up to twelve hours more than any iPhone SE. Face ID, USB-C, and iOS 18, complete with Apple Intelligence, are standard.
