iPhone 16e Aims to Revive Budget Market
News Desk
Islamabad: Apple (AAPL.O) unveiled the iPhone 16e on Wednesday, a budget-friendly model designed to attract mid-market consumers in key markets like China and India.
The new phone marks a departure from the SE naming convention used for previous budget models and is aimed at competing with popular Android devices, especially as rivals like Samsung (005930.KS) and Huawei integrate AI tools into their phones.
Following a decline in overall iPhone sales last quarter, Apple has seen a significant drop in the proportion of revenue from its budget phones over the past decade.
Priced at $599, the 16e is $170 more expensive than its predecessor, the SE, but features many of the capabilities found in Apple’s flagship models, including a powerful chip for Apple Intelligence, which provides access to ChatGPT.
The 16e shares a similar design to its pricier counterparts, with the exceptions of a missing wide-angle camera, one less button, and a slightly altered display.
Apple’s stock remained relatively unchanged in afternoon trading. However, the company recently forecasted strong sales growth, suggesting that iPhone sales will recover, partly driven by the expansion of AI features to more regions and languages.
Despite this optimism, analysts have warned that the rollout is slow, and Apple has yet to announce a data partner in China for these AI features.
Sales of the SE model, which made up 10% of iPhone revenue when it was launched in 2016, have now dropped to just 1% of total iPhone revenue last year, according to Counterpoint Research.
The iPhone 16e is expected to help Apple in cost-sensitive markets, like Europe and China, where customers often pay for phones upfront, according to Ben Bajarin, principal analyst at Creative Strategies.
The 16e will be powered by the A18 chip, used in more expensive models launched in September 2024, and will come with Apple Intelligence preinstalled. It is about $200 cheaper than the entry-level iPhone 16, available only in black and white, whereas the more expensive models come in a variety of vibrant colors.
The iPhone 16e will be the first device to feature Apple’s C1 chip, its in-house modem for cellular connectivity, replacing Qualcomm’s chips. The camera will have a 48-megapixel sensor with two lenses, including a 2x zoom lens integrated into the primary camera, but it will lack a wide-angle lens found in pricier models.
The 16e will also have a notch at the top for the front-facing camera, while more expensive models feature a screen that surrounds the camera. Additionally, it will forgo a camera control button available on the main iPhone 16 series.
While SE models were known for their smaller screens, the 16e will feature a 6.1-inch display, the same as the least expensive iPhone 16. The new design eliminates the physical home button, replacing it with Face ID.
Pre-orders for the iPhone 16e will begin on February 21 in 59 countries, including the U.S., China, and India, with shipments starting on February 28.
The SE model will be the last iPhone to adopt the USB Type-C charging port, as Apple phases out its proprietary Lightning connector to comply with new EU regulations. As a result, the company discontinued the third-generation SE and iPhone 14 in the EU due to non-compliance with local charging standards.
