Apple has unveiled the iPhone 16e, a new budget-friendly smartphone priced at $599 (R11,088), aimed at boosting sales after a sluggish holiday season.
The device will be available for purchase starting February 28, with preorders opening on February 21. Replacing the iPhone SE, which retailed for $429 (R7,940), the new model comes at a $170 (R3,147) premium over its predecessor.
Apple has modernized the iPhone 16e by ditching the home button in favor of a sleek, 6.1-inch display with Face ID. It boasts a 48-megapixel camera, the A18 chip from the iPhone 16, and a USB-C charging port. Additionally, it runs Apple’s AI-powered software, Apple Intelligence.
A key highlight of the new model is Apple’s proprietary C1 cellular modem chip, marking a major shift away from Qualcomm components. This long-anticipated move signals Apple’s push for greater hardware independence.
The iPhone 16e represents the biggest revamp of Apple’s budget lineup since the SE series debuted in 2016. The previous iPhone SE and iPhone 14 models are being discontinued as part of this transition.
This release is just the beginning of a broader redesign strategy for Apple, with a slimmer iPhone model set to launch in 2025.
Apple’s smartphone division has been facing challenges, with sales dipping about 1% last quarter. The iPhone 16 has struggled to generate strong consumer interest, and Apple’s AI-powered software has yet to gain significant traction globally.
China remains a tough market, with Apple’s revenue there falling 11% last quarter due to competition from local brands like Huawei and Xiaomi. The iPhone 16e aims to strengthen Apple’s position in the mid-range market segment.
Apple has spent years refining the iPhone 16e, bridging the gap between budget and premium devices by integrating features like facial recognition. However, it still lacks some high-end features, such as Dynamic Island, MagSafe wireless charging, a dual-camera system, and ProMotion’s high-refresh-rate display found in the iPhone 16 Pro models. It also does not include a Camera Control button.
Despite these omissions, the iPhone 16e is groundbreaking due to its in-house C1 modem chip, enabling cellular connectivity. This marks the start of Apple’s gradual shift away from Qualcomm.
Apple has invested billions in developing its modem, hiring thousands of engineers and acquiring Intel Corp.’s cellular modem division. The modem has undergone extensive global carrier testing to match Qualcomm’s standards and ensure reliable performance.
One drawback is that the modem lacks mmWave 5G support, which provides ultra-fast speeds in certain urban areas. However, it is expected to improve battery life compared to previous entry-level models. Apple claims the iPhone 16e offers up to 26 hours of video playback—significantly longer than the third-generation iPhone SE’s 15-hour limit.
The iPhone 16e comes in 128GB, 256GB, and 512GB storage options and is available in black and white. The 256GB model costs $699 (R12,938), while the 512GB version is priced at $899 (R16,640), bringing it close to the entry-level iPhone 16 Pro.
By switching to USB-C, Apple ensures compliance with European Union regulations that require all mobile devices to adopt the standard. The previous iPhone SE used Apple’s proprietary Lightning connector, which is now phased out under these rules.
The iPhone 16e also supports Apple Intelligence, a major marketing focus. However, Apple’s AI tools, like Genmoji for custom AI-generated emojis, have yet to drive mass adoption.
Additionally, the device features a customizable Action button, satellite connectivity for emergency messaging, and off-the-grid texting.
Apple is preparing a major software update in April to expand Apple Intelligence to more countries and add multilingual support. The company is also working on bringing its AI capabilities to China, according to a Bloomberg report.
Beyond the iPhone 16e, Apple is gearing up for new iPads and Macs in the coming months, including a MacBook Air featuring the M4 chip. Later this year, Apple plans to launch a redesigned iPhone lineup and introduce the Apple Watch Ultra 3, which will feature advanced satellite connectivity for enhanced off-grid functionality.
