Apple will launch a cheaper iPhone model that features its new Apple Intelligence software as the tech giant works to fight off stiff competition from Chinese rivals, the company said Wednesday.
The new iPhone 16e will retail for $599 when it goes on sale later this month — $200 less than the much-touted iPhone 16 released last September.
It will be available in white or black, and come with Apple’s A18 chip — the processor in the iPhone 16 — so it can run all the same apps as the company’s more expensive model.
Apple shares ticked slightly higher Wednesday.
The iPhone 16e will also come equipped with Apple’s first in-house cellular modem, which it calls the C1. Its smartphones previously used Qualcomm modems. Modems allow devices to connect to the Internet using a cell network.
It will have a USB-C charging port, not Apple’s older proprietary Lightning plug, which can no longer be sold in some countries overseas due to EU regulations.
The cheaper model is a major step up from the iPhone SE, Apple’s simpler smartphone model that launched in 2022 and retails for just $429.
The few notable differences in the iPhone 16e compared to the iPhone 16 are a slightly slower GPU processor, and a less advanced camera compared to the newer dual-camera system.
The low-cost model comes after Apple last month forecast higher sales than Wall Street expected. The company promised an earnings rebound on the rollout of its new artificial intelligence features.
Investors welcomed the buoyant outlook after iPhone sales and China revenue slumped during the holiday quarter due to tough competition from Chinese rivals like Huawei.
