Apple Inc. has unveiled the iPhone 16e, a revamped entry-level smartphone priced at $599 as part of its efforts to reignite consumer interest following a lackluster holiday season.
Replacing the iPhone SE, this release represents the most upgrade to Apple’s budget iPhone lineup since its debut in 2016.
Set to launch on February 28, with preorders opening on February 21, the iPhone 16e boasts a 6.1-inch display, Face ID and Apple’s A18 chip.
The device also features USB-C charging, aligning with Apple’s continued shift away from the Lightning port.
In a major shift, the iPhone 16e includes Apple’s first in-house cellular modem chip, replacing a key component from Qualcomm Inc. The transition marks a pivotal moment in Apple’s long-term strategy to control more of its hardware ecosystem.
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The launch comes at a critical time for Apple. iPhone sales declined by about 1% during the holiday quarter with demand for the iPhone 16 falling short of expectations.
In China, a key market, Apple’s overall sales dropped 11% as competition from Huawei Technologies Co. and Xiaomi Corp. intensified.
The iPhone 16e is designed to close the gap between Apple’s lower-end smartphones and its premium models. Unlike previous budget iPhones, the 16e removes the physical home button, offering a more modern design.
The device includes a 48-megapixel camera, satellite connectivity for emergency messaging, and Apple Intelligence, the company’s AI-powered software suite.
Still, the new model lacks some premium features found in the iPhone 16 Pro series. It does not include the Dynamic Island interface, MagSafe wireless charging, or a high-refresh-rate ProMotion display.
The C1 modem chip, Apple’s first attempt at replacing Qualcomm’s modem, also lacks mmWave 5G, a high-speed network standard available in select cities.
The introduction of the in-house modem signals Apple’s long-term plan to reduce reliance on external chip suppliers. The company has spent years developing the technology, investing billions and acquiring Intel Corp.’s modem business in 2019. While Apple has extensively tested the chip across global carrier networks, ensuring seamless performance remains a key challenge.
Apple will offer the iPhone 16e in 128GB, 256GB, and 512GB storage options with pricing starting at $599.
The 256GB version will cost $699 while the 512GB variant is priced at $899—putting it near the entry-level iPhone 16 Pro.
The new model comes as Apple prepares for a broader iPhone overhaul later this year, including a redesigned, slimmer iPhone and updated iPads and Macs.
A software update in April will expand Apple Intelligence to more regions with the company working to bring AI features to the Chinese market.
With the iPhone 16e, Apple is positioning itself to compete more aggressively in the mid-range smartphone market while laying the foundation for a future built on custom-designed chips and AI-driven experiences.
