Apple introduced a new low-end smartphone called the iPhone 16e priced at $599 in the US but €729 in Ireland, aiming to revive growth after a sluggish holiday season.
The rebranded device goes on sale February 28th. Pre-orders for the phone begin February 21st
Apple modernised the device by removing the now-antiquated home button and adding a larger screen with Face ID. The model has a 48-megapixel rear camera, the same A18 chip as the iPhone 16 and a USB-C charging port. It also runs the company’s AI software, Apple Intelligence.
The new instalment represents the biggest change in the history of Apple’s low-end iPhone, which was introduced as the SE in 2016 and last updated nearly three years ago. As part of the shift, the current iPhone SE and iPhone 14 have been discontinued.
The debut is the first of several iPhone design changes slated for this year, with Apple also planning a new skinnier version. The company’s smartphone business could use a boost. Sales fell about 1 per cent in the holiday quarter, when the iPhone 16 failed to entice shoppers. The Apple Intelligence software also has lagged behind rival offerings and isn’t available in much of the world.
China has been a particular weak spot. Apple’s overall sales fell 11 per cent in the country last quarter, where it’s losing ground to local players like Huawei and Xiaomi.
The new model should give Apple a more compelling way to reach the lower end of the smartphone market. The company spent years working on the device, aiming to close the gap between its low-end phone and the main iPhones. But the model still lacks some of the technology found on pricier versions. For instance, it doesn’t have the Dynamic Island interface and has only one back camera.
The new phone is groundbreaking in one way that users might not notice: It has an in-house cellular modem chip called the C1 that replaces a component from Qualcomm. The device kicks off a broader transition away from Qualcomm, a long-time supplier. Apple plans to bring its own modem to the skinnier iPhone planned for this fall, and the part will go into Pro models in 2026, Bloomberg News has reported.
The device comes in options with 128, 256 and 512 gigabytes of storage, as well as white and black colours. Bloomberg News first reported earlier this month that the product was imminent and earlier wrote about its features.
The USB-C charging standard also allows Apple to sell the device in the EU again. Rules in that region require device makers to use that kind of port, and the prior iPhone SE had a Lightning connector.
The new hardware specifications also can support Apple Intelligence, and the company is making that technology central to its marketing pitch. But Apple’s AI tools have been slow to catch on with consumers. New writing features and capabilities like Genmoji – custom AI-created emoji – haven’t inspired as many iPhone upgrades as anticipated.
The new iPhone 16e also includes a customisable Action button like recent high-end models, as well as the ability to connect to satellite networks for off-the-grid texting and accessing emergency services.
The Cupertino, California-based company is planning a software update in April that will bring Apple Intelligence to more countries and add support for additional languages. It’s also racing to bring Apple Intelligence to China, Bloomberg News reported last week.
Apple is looking to introduce new iPads and Macs in the coming months as well, including a MacBook Air with an M4 chip. And in addition to the iPhone overhaul later in the year, the company will debut a new Apple Watch Ultra 3 with off-the-grid satellite capabilities. – Bloomberg
