Apple Unveils Budget iPhone 16e to Boost Sales Amidst Competition (AAPL)

🗝️ Key Points

• Apple has introduced a budget-friendly iPhone model, the iPhone 16e, priced at $599, which is $200 less than the starting price of the iPhone 16.
• Despite the lower price, the iPhone 16e supports Apple Intelligence, offering features like image generation and notification summaries.
• The iPhone 16e is available for pre-order and will officially launch soon.The new iPhone 16e, available in black and White, is powered by the Apple A18 chip, the same as in the.

Apple has introduced a budget-friendly iPhone model, the iPhone 16e, priced at $599, which is $200 less than the starting price of the iPhone 16. Despite the lower price, the iPhone 16e supports Apple Intelligence, offering features like image generation and notification summaries. The iPhone 16e is available for pre-order and will officially launch soon.

The new iPhone 16e, available in black and white, is powered by the Apple A18 chip, the same as in the latest iPhone 16 models. Additionally, it features Apple’s self-developed C1 chip, providing a new solution for cellular modem connections, differing from Qualcomm chips.

Previous budget models were branded as iPhone SE, but sales have declined over the years. Data from Counterpoint Research shows that the iPhone SE’s contribution to Apple’s total revenue has dropped from 10% in 2016 to about 1% in 2024. Apple aims to rejuvenate sales with the new naming strategy, attracting new customers to its ecosystem and capturing a larger share of the mid-range smartphone market against competitors like Samsung and Huawei.

In the last quarter, Apple’s overall iPhone sales decreased by 1% year-over-year, yet total sales still exceeded $69 billion. Analysts anticipate a recovery in iPhone sales as Apple plans to launch Apple Intelligence in more languages globally.

The iPhone 16e will be available for pre-order in 59 countries and regions, including the U.S., China, and India, with sales commencing shortly. Notably, Apple is expected to release a Chinese version of Apple Intelligence in May, following a confirmed AI collaboration with Alibaba to enhance localization and data compliance.

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