Apple’s AI Revolution Extends to Mid-Range Phones
Apple has announced the iPhone 16e, a budget-conscious smartphone with AI capabilities aimed at reclaiming its mid-market presence. This move comes as sales of Apple’s SE models have plummeted, pushing the company to reposition its strategy.
What Sets iPhone 16e Apart?
Apple has redesigned its budget lineup, replacing the SE branding with the more premium-sounding 16e. Priced at $599, the device offers powerful hardware at a competitive price:
- Apple A18 chip, bringing flagship-level performance.
- Apple Intelligence & ChatGPT access.
- Face ID replaces the home button.
- 6.1-inch display, same as iPhone 16.
However, to keep costs in check, Apple has omitted a wide-angle camera and a dedicated camera button that appears in higher-end models.
A Strategic Move to Counter Android’s AI Push
The iPhone 16e is designed to compete with Android flagships, particularly in markets like India and China, where Apple has faced increasing competition from Samsung and Huawei.
Apple’s budget phone sales have dropped significantly, with the SE model making up just 1% of iPhone revenue in 2023, a steep decline from 10% in 2016, as per Counterpoint Research.
Tech expert Ben Bajarin believes the iPhone 16e could help Apple gain traction in cost-conscious markets, where buyers prefer upfront payments over installment plans.
Launch & Market Availability
- Pre-orders start: February 21, 2025
- Shipping begins: February 28, 2025
- Available colors: Black & White only
Apple is also making a major shift in its supply chain, introducing the C1 modem, its first in-house chip for cellular connectivity, replacing Qualcomm chips.
By integrating AI features into an affordable model, Apple is ensuring wider adoption of its AI ecosystem, making the 16e a crucial step toward its future AI ambitions.
