By In an effort to expand its audience and integrate advanced artificial intelligence capabilities, Apple has unveiled a sleeker yet more expensive version of its most affordable iPhone. The newly introduced iPhone 16e, revealed on Wednesday, represents the fourth generation of Apple’s budget-friendly iPhone lineup, previously branded as the iPhone SE. The last version of this series was released in 2022.
Much like the high-end iPhone 16 models announced last September, the iPhone 16e is equipped with a powerful chip designed to process a range of AI-driven features. These include automatic summarization of text and audio, real-time emoji creation, and enhancements to the virtual assistant, Siri. Additionally, the device boasts an improved camera and a longer-lasting battery.
Kaiann Drance, Apple’s vice president responsible for iPhone marketing, expressed enthusiasm about the new release, stating, “We’re so excited for iPhone 16e to complete the lineup as a powerful, more affordable option to bring the iPhone experience to even more people.”
By Ropafadzo Mashawi
However, analysts suggest that Apple faces a delicate balancing act. While the company aims to attract more users with a lower-cost model, it must also avoid undercutting sales of its premium devices. Dipanjan Chatterjee, an analyst at Forrester Research, explained, “The problem with a lower-end product in a luxury portfolio is that you want it to be good but not so good as to cannibalize the crown jewels.”
Although Apple has been promoting its AI advancements since June, the full suite of “Apple Intelligence” features has yet to be widely released, particularly in the U.S. and other global markets. The delay in rolling out these AI-powered capabilities through free software updates contributed to a slight decline in iPhone sales during the recent holiday season.
One of Apple’s biggest challenges has been maintaining its position in the Chinese market, where it has not yet confirmed when AI features will be available. However, a recent partnership with Alibaba could pave the way for AI integration in China as early as this spring.
Beyond its AI capabilities, the iPhone 16e also introduces a new design. The device features a 6.1-inch display, an upgrade from the previous SE model’s 4.7-inch screen, and eliminates the traditional home button. Instead, it will rely on facial recognition technology for unlocking, similar to Apple’s higher-end models.
Following the announcement, Apple’s stock saw a slight increase, closing at $244.87 on Wednesday—still below its peak of approximately $260 in late December.
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