Apple launches lower-cost iPhone 16e with AI

iPhone 16e
iPhone 16e

Apple unveiled the iPhone 16e, a lower-cost model with artificial intelligence features, on Wednesday. Priced at $599, the new device is set to become available starting February 28, offering a more affordable alternative to the iPhone 16, which is priced at $799. The iPhone 16e includes Apple Intelligence features, which CEO Tim Cook mentioned as a contributing factor to record iPhone upgrades last quarter.

 

The new model is powered by the same A18 chip found in the iPhone 16, ensuring robust performance.

Last week, Morgan Stanley analysts forecasted that Apple could ship 15 million units of a lower-cost iPhone during the company’s 2025 fiscal year. However, they initially expected this new model to update the iPhone SE line, priced slightly lower at $499.

The announcement of the iPhone 16e follows reports that Apple is working with Alibaba to bring its intelligence features to iPhones in China. Apple has reportedly submitted these AI features to Chinese regulators for approval, which could take several months. Apple’s shares saw little change in intraday trading on Wednesday, but they have surged by about a third over the past year.

The device brings A.I. features like notification summaries and writing recommendations in English to the company’s lowest-priced iPhone model. In the coming months, it prepares to expand those features to other languages, including Chinese, Portuguese, and localized English for India. The iPhone 16e is the first update to the company’s lowest-priced smartphone line since 2022, replacing the iPhone SE.

Affordable iPhone 16e with AI

The cheaper phones have helped Apple get its signature product into the pockets of price-sensitive customers, who often trade up for more expensive models the next time they buy a phone. Apple is introducing the new iPhone at a critical juncture. The company’s iPhone sales have been in a slump, with sales down 2 percent from their peak of $205.5 billion in 2022.

See also  Stock market rallies as tech stocks surge

Tim Cook, Apple’s chief executive, has attributed some of the iPhone’s struggles to the limited availability of Apple Intelligence, which was announced months before it became available and is offered only on the company’s newest models in English-speaking markets like the United States. In a call with analysts last month, Mr. Cook said the new A.I. features drove iPhone sales in markets where it was available.

Apple aims to leverage these new artificial intelligence features to rejuvenate its market appeal and improve sales figures by offering advanced capabilities in its more affordable lineup.

Photo by; Aditya Hegde on Unsplash

Harper Johnson

Harper Johnson stands at the forefront of digital marketing, where she dissects and interprets the impact of online advertising trends, social media dynamics, and search engine algorithms on consumer behavior.

More Stories