Apple launches cheap iPhone to woo China

Apple launches budget-friendly iPhone 16e with AI features at $599 to reclaim market share in China and India.

In Short

Apple has introduced the budget iPhone 16e at $599, targeting mid-market customers in regions like China and India, and it features a 48-megapixel camera and strong AI capabilities. This new model aims to boost sales in price-sensitive markets, marking a shift from the SE naming and offering improved tech alongside USB Type-C charging compliance.

This device moves away from the SE naming and is designed to compete with popular Android smartphones featuring AI capabilities. Sales of Apple’s phones have declined recently, particularly in its budget segment.

Despite the price increase of $170 compared to the SE, the 16e boasts features akin to flagship models, powered by a strong chip that supports Apple Intelligence, which includes access to ChatGPT. It features a 48-megapixel camera without a wide-angle lens, a different display, and a notch for the front camera.

The 16e is expected to improve sales in price-sensitive markets as it provides a more affordable entry into Apple’s ecosystem. Analysts have noted that while demand for phone upgrades among existing users is slow, the new model lowers the cost barrier.

Major shift

It is equipped with the A18 chip and the new C1 modem for cellular connectivity, marking a shift from Qualcomm chips. Pre-orders for the 16e will begin on February 21, with shipments starting on February 28, and it will be available in black and white only.

Additionally, the 16e is set to adopt USB Type-C charging, aligning with EU regulations. The previous SE model is now discontinued in the EU, unable to meet new charging requirements.

Still, many Apple analysts are disappointed that the “new product” being teased by Apple is recent weeks was just another small incremental update to it’s lineup.