Apple (AAPL) launched the highly expected-iPhone 16e, which is the low-end version of its high-end iPhone 16. Introduced on Wednesday, the iPhone 16e will come at $599, far below the starting price of the iPhone 16 at $799. The new phone is available to be bought starting on February 28.
The iPhone 16e brings Apple Intelligence, a collection of sophisticated AI features that are meant to boost user experience. CEO Tim Cook previewed the new phone on X last week, noting its contribution to the company’s record-breaking iPhone upgrades in the fiscal first quarter. The phone will be powered by the same A18 chip as the iPhone 16, promising high performance despite the lower price tag.
Morgan Stanley analysts previously estimated Apple could ship 15 million of a lower-priced iPhone in Apple’s 2025 fiscal year. Their estimates were based upon anticipated upgrades on the iPhone SE series, projected to cost somewhere between $499. The iPhone 16e with more powerful AI features to come at an added cost, might redefine the strategy of Apple next year.
The release of the iPhone 16e is timed with news of an alliance between Apple and Chinese e-commerce giant Alibaba (BABA). Apple is said to be collaborating with Alibaba to introduce Apple Intelligence features on iPhones in China. The AI tools are pending approval from Chinese regulators, a process that may take several months to finish.
Despite Apple’s release of the iPhone 16e, Apple’s stock did not fluctuate much in intraday trading on Wednesday. Apple’s shares have grown quite a bit over the last year, rising by about one-third of their value.
The iPhone 16e will provide greater access to customers who desire a powerful iPhone with sophisticated AI capabilities at a lower price, making the iPhone a desirable choice for a wider group of consumers.
