Apple introduced its latest entry-level iPhone, the iPhone 16e, featuring major upgrades and a significant price increase compared to its predecessor, the iPhone SE series.
The new device incorporates the same AI-capable processor found in the standard iPhone 16 lineup released last fall. This chip enables features like text and audio summarization, dynamic emoji creation, and enhanced Siri functionality. The phone also comes with improved battery life and camera capabilities.
These enhancements come with a substantial price adjustment, as the iPhone 16e starts at $600 – a 40% increase from the previous iPhone SE’s $430 price point. While more expensive than before, it remains $200 cheaper than the base iPhone 16 model. The device will hit stores on February 28, with pre-orders beginning Friday.
The pricing strategy reflects Apple’s challenge in balancing market expansion with profit margins. Forrester Research analyst Dipanjan Chatterjee notes: “The problem with a lower-end product in a luxury portfolio is that you want it to be good but not so good as to cannibalise the crown jewels.”
Though Apple has promoted its AI features since June, the complete package dubbed “Apple Intelligence” remains partially unavailable in the US and some international markets. These delays impacted iPhone sales during the recent holiday season, which saw a slight decline compared to 2023 levels.
The company faces particular challenges in China, where AI feature availability remains uncertain. However, Apple’s recent AI partnership with Alibaba could facilitate deployment in China during the first half of this year.
The iPhone 16e represents a design departure from previous SE models, featuring a larger 6.1-inch display screen compared to the SE’s 4.7-inch screen. The traditional home button has been removed in favor of facial recognition technology, matching the higher-end iPhone models.
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