Apple has introduced a new low-end smartphone called the iPhone 16e priced at US$599, aiming to revive growth after a sluggish holiday season.
The rebranded device goes on sale on 28 February and will cost $170 more than the $429 iPhone SE that it replaces. Pre-orders for the phone begin on 21 February. The dollar pricing equates to just over R11 000 in South Africa on a direct currency conversion, before import duties and VAT.
Apple modernised the device by removing the now-antiquated home button and adding a larger screen with Face ID. The model has a 48-megapixel rear camera, the same A18 chip as the iPhone 16 and a USB-C charging port. It also runs the company’s AI software, Apple Intelligence.
The new instalment represents the biggest change in the history of Apple’s low-end iPhone, which was introduced as the SE in 2016 and last updated nearly three years ago. As part of the shift, the current iPhone SE and iPhone 14 have been discontinued.
The debut is the first of several iPhone design changes slated for this year, with Apple also planning a new, skinnier version. The company’s smartphone business could use a boost. Sales fell about 1% in the holiday quarter, when the iPhone 16 failed to entice shoppers. The Apple Intelligence software also has lagged behind rival offerings and isn’t available in much of the world.
China has been a particular weak spot. Apple’s overall sales fell 11% in the country last quarter, where it’s losing ground to local players like Huawei and Xiaomi.
Closing the gap
The new model should give Apple a more compelling way to reach the lower end of the smartphone market. The company spent years working on the device, aiming to close the gap between its low-end phone and the main iPhones. But the model still lacks some of the technology found on pricier versions. For instance, it doesn’t have the Dynamic Island interface and has only one back camera.
The new phone is groundbreaking in one way that users might not notice: it has an in-house cellular modem chip called the C1 that replaces a component from Qualcomm. The device kicks off a broader transition away from Qualcomm, a longtime supplier. Apple plans to bring its own modem to the skinnier iPhone planned for September, and the part will go into Pro models in 2026.
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The device comes in options with 128GB, 256GB and 512GB of storage, as well as white and black colours.
The USB-C charging standard also allows Apple to sell the device in the EU again. Rules in that region require device makers to use that kind of port, and the prior iPhone SE had a Lightning connector.
The new hardware specifications also can support Apple Intelligence, and the company is making that technology central to its marketing pitch. But Apple’s AI tools have been slow to catch on with consumers. New writing features and capabilities like Genmoji — custom AI-created emoji — haven’t inspired as many iPhone upgrades as anticipated.
The new iPhone 16e also includes a customisable Action button like recent high-end models, as well as the ability to connect to satellite networks for off-the-grid texting and accessing emergency services.
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The Cupertino, California-based company is planning a software update in April that will bring Apple Intelligence to more countries and add support for additional languages. It’s also racing to bring Apple Intelligence to China.
Apple is looking to introduce new iPads and Macs in the coming months as well, including a MacBook Air with an M4 chip. And in addition to the iPhone overhaul later in the year, the company will debut a new Apple Watch Ultra 3 with off-the-grid satellite capabilities. — (c) 2025 Bloomberg LP
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