Apple Unveils New Budget iPhone 16e

Apple has unveiled a new budget iPhone, the iPhone 16e, which includes its new AI tools and latest processor in what it says is a “more affordable” handset.

The iPhone 16e will go on sale on Friday February 28 in the UK, the tech giant confirmed, starting at £599 – £200 less than its current cheapest iPhone 16 device, which was released in September.

The handset will come with the firm’s latest software, iOS 18, and the same A18 chip which powers the iPhone 16 range, including its new Apple Intelligence AI tools, which can be used to help edit text and photos, transcribe audio, refer to ChatGPT when needed and help with a range of creative tasks such as image and emoji generation.

The inclusion of Apple Intelligence on the 16e is a notable milestone for the iPhone maker and its AI features, as it is the first time the new tools will be made available to users outside of its current top-tier iPhone 16 and most powerful iPhone 15 Pro handsets.

Until now, rivals Google and Samsung have had their AI tools available on a broader range of their new and older smartphones.

Kaiann Drance, Apple’s vice president of worldwide iPhone product marketing, said: “iPhone 16e packs in the features our users love about the iPhone 16 line-up, including breakthrough battery life, fast performance powered by the latest-generation A18 chip, an innovative two-in-one camera system, and Apple Intelligence.

“We’re so excited for iPhone 16e to complete the line-up as a powerful, more affordable option to bring the iPhone experience to even more people.”

Industry expert Ben Wood, chief analyst at CCS Insight, said the broadening of availability for Apple Intelligence was a key moment for the iPhone, but also noted the introduction of C1, the firm’s first ever own-built cellular modem – the device which enables wireless connectivity, such as 5G.

“This is a key product for Apple and a very important part of the iPhone portfolio as it delivers a device that takes Apple Intelligence to a new, lower price point,” he said.

“Although most consumers will be most interested in a new iPhone being launched, from an industry perspective, the big news is the introduction of Apple’s own modem, the Apple C1, which is the first cellular modem designed by Apple.

“The arrival of Apple’s own modem platform will have a long-term impact on its business.

“This marks the beginning of an ongoing journey that we expect will see Apple seek to develop even more integrated products and could result in cellular connectivity also coming to its popular Mac (computer) line up.”