Apple launches iPhone 16e: A cheaper version of the iPhone 16 with Apple Intelligence support

Apple on Wednesday announced the launch of a cheaper version of the iPhone 16 called the iPhone 16e. This model represents Apple's effort to penetrate deeper into the more affordable smartphone segment while offering users the latest technology, including Apple Intelligence features. The new iPhone 16e will be available from 28 February at a price of $599 (approximately CZK 13,500).

Apple's new AI and affordable phone strategy

Incorporating Apple Intelligence into a more affordable iPhone could be key to spreading AI features to a wider range of users. Apple $AAPL has faced intensified competition in recent years from Google and Samsung, which have aggressively innovated their smartphones, particularly in the area of AI.

The move away from the iPhone SE series models, which Apple first introduced in 2016 and last updated in 2022, is also a significant shift. According to a Consumer Intelligence Research Partners survey, SE models accounted for only about 5% of U.S. iPhone sales by the end of 2024. While not as cheap as the SE, the new iPhone 16e fits better into Apple's current product lineup with its more modern design and features.

What will iPhone 16e offer?

The new iPhone 16e is the first model to include a cellular modem designed directly by Apple. The company claims this 5G modem is "the most efficient modem in iPhone history," an important milestone since Apple bought a majority stake in Intel's mobile division in 2019. Using its own modems allows Apple more control over the development and launch schedule of new products.

Unlike the older iPhone SE, the iPhone 16e is closer in design to the standard iPhone 16. Both models have a 6.1-inch display, Face ID, a 48-megapixel camera, and a new Action Button that can be programmed to use different shortcuts. But unlike the iPhone 16, the 16e lacks a second lens for ultra-wide-angle shots and a new Camera Control button for quick access to the camera.

At the heart of the iPhone 16e is the same processor as the other models in the iPhone 16 series, which means full Apple Intelligence support. This feature set includes emoji and image generation based on text prompts, notification summarization, deleting objects from photos, and ChatGPT integration into Siri.

Apple and the future of AI in smartphones

After the release of ChatGPT in late 2022, artificial intelligence has become a key technology in the industry. Apple, however, has long been considered a latecomer to consumer AI, though it has been using AI to enhance cameras and other features for years.

The inclusion of Apple Intelligence in the more affordable iPhone model suggests that Apple now sees AI as a key component of its future products. The question remains whether these features will be enticing enough to motivate users to upgrade. After all, Apple has been struggling with declining revenue from iPhone sales, which was evident in the first quarter of fiscal year 2025.

With the launch of the iPhone 16e, Apple is trying to reach a new group of customers and consolidate its position in the AI-enabled smartphone market. It will be interesting to see whether this move will help Apple compete with the growing influence of Google and Samsung in the AI space.

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Source: CNN