Apple unveils the iPhone 16e, a cheaper model with AI features—but will it be enough to revive sales?
Apple is shaking up its iPhone lineup with the launch of the iPhone 16e, a more affordable model that still packs the power of Apple Intelligence—the tech giant’s latest foray into AI-driven features.
Priced at £599 in the UK, the 16e is £200 cheaper than the iPhone 16, making it the most budget-friendly AI-powered iPhone yet. With flagging sales and growing concerns over Apple’s ability to innovate, the company is betting big that this lower-cost device will rekindle consumer excitement.
A Cheaper iPhone, but Not Too Cheap
The iPhone 16e has the same A18 processor found in its more expensive siblings, meaning it can handle high-performance apps and gaming just as well. However, Apple has cut costs elsewhere, including fewer cameras and a simplified design.
Despite its lower price, it’s still far from a true budget phone. The original iPhone SE launched in 2016 at less than half the price, making this a premium entry-level device rather than an affordable smartphone for the masses.
Apple analyst Paolo Pescatore sees this as a strategic move to lure users into its ecosystem. “This now becomes one of the most powerful affordable iPhones on the market,” he said. “It should help accelerate Apple’s foray into AI and attract users from rival platforms.”
Apple’s AI Push: Innovation or Desperation?
Apple Intelligence is at the heart of the iPhone 16e, promising to enhance user experience with AI-powered tools like ChatGPT integration in Siri, smarter text generation, and advanced photo editing.
Apple CEO Tim Cook claims these features will help users “save time, quickly get more things done, and express themselves in new ways”. However, Apple’s AI track record is far from spotless—the company recently had to suspend its AI-generated news alerts after they started fabricating false headlines.
Will This Be Enough to Revive iPhone Sales?
Apple has been struggling to find its next blockbuster product. Despite spending $189 billion on research and development over the past decade, its biggest recent releases include the underwhelming HomePod and the $3,500 Vision Pro headset—hardly mainstream hits.
“For all that investment, Apple fanboys, fangirls, and investors are right to be disappointed,” said Cory Johnson of Epistrophy Capital Research. “AI should be right in Apple’s wheelhouse, but so far, the results have been underwhelming.”
With iPhone sales slumping in key markets, the 16e could provide a much-needed boost. In countries like India, where iPhones are typically priced out of reach, a lower-cost model could open up a massive new customer base. Analyst Dipanjan Chatterjee believes the iPhone 16e could be a gateway device, drawing users into Apple’s ecosystem who might later upgrade to pricier models.
A Smart Strategy or a Temporary Fix?
The iPhone 16e is a calculated gamble—it keeps Apple in the AI race while appealing to price-conscious consumers. But will it be enough to turn around declining sales and satisfy critics who say Apple has lost its edge?
With pre-orders opening on February 21 in 59 countries, the world won’t have to wait long to find out.
