Is the iPhone 16e Worth the Price Tag of $599?

People walk by an Apple store at the Westfield UTC shopping center on January 31, 2025 in San Diego, California.Kevin Carter/Getty Images North America/Getty Images

Apple announced the iPhone 16e, a budget-friendly version of the iPhone 16. It features Apple's first in-house cellular modem and is the cheapest iPhone supporting Apple Intelligence.

The iPhone 16e costs $599 and launches on February 28.

Integrating Apple Intelligence into a cheaper iPhone is key to expanding AI tool access amid rising competition from Google and Samsung. Google's Pixel A-series and both companies' focus on AI updates for Android devices highlight this competitive landscape.

The iPhone 16e, though pricier than the SE, may attract those preferring a device resembling Apple's newer models. The iPhone SE was the last with a home button and front fingerprint sensor, features Apple moved away from starting with the iPhone X in 2017.

Apple CEO Tim Cook hinted at the launch in a social media post on February 13, mentioning that a new “family member” would debut on February 19.

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What the iPhone 16e can do

Apple states the iPhone 16e's 5G modem is the “most power-efficient modem ever on an iPhone.” This comes over five years after acquiring most of Intel’s smartphone modem business in 2019, reducing reliance on partners and enhancing control over product development and launch timing.

The iPhone 16e represents a much-anticipated update to Apple's more affordable iPhone line. The $429 iPhone SE, though cheaper, resembled the seven-year-old iPhone 8 and was missing features common in most modern phones, like facial recognition and a nearly edge-to-edge display. Following Wednesday's announcement, the iPhone SE is no longer listed on Apple's online store.

Unlike the iPhone SE, the iPhone 16e has a lot in common with the iPhone 16, bringing it up to speed with Apple’s current lineup. Both phones have a 6.1-inch screen, Face ID, a 48-megapixel camera and the Action button for programming shortcuts. However, the iPhone 16e is cheaper and it lacks a dedicated second camera for capturing wider shots and the Camera Control button for quickly accessing the camera.

It’s powered by the same processor as the rest of the iPhone 16 lineup, enabling it to run Apple Intelligence.

Apple Intelligence, which until now has only been available on the iPhone 16 family, 2023’s iPhone 15 Pro and Pro Max and certain iPads and Macs, is a blanket term that refers to a handful of AI-powered tools – such as the ability to generate emojis and images with a prompt, summarize notifications, and remove objects from photos as well as ChatGPT integration with Siri.

The popularity of ChatGPT following its late 2022 release sent a shockwave through the tech industry, prompting companies such as Microsoft, Google and Samsung to incorporate generative AI into their products.

But Apple was largely considered to be a latecomer to consumer-facing artificial intelligence. Like many tech companies, Apple has long used AI to power backend features, like camera modes, but didn’t begin rolling out Apple Intelligence until last fall. Apple Intelligence’s arrival on a cheaper device like the iPhone 16e signals the company sees AI as being a core part of its products moving forward.

Tech giants have positioned generative AI and chatbots as the next major evolution in how consumers use and interact with technology. Yet it’s unclear whether AI tools like Apple Intelligence will be compelling enough to drive smartphone upgrades, with Apple’s iPhone revenue falling short of Wall Street’s expectations in its fiscal first quarter of 2025.