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Apple (AAPL+0.20%) just unveiled the newest version of its lower-cost iPhone as part of the iPhone 16 family.
The new iPhone 16e uses the same A18 chip that is in the iPhone 16, features a full-screen OLED display, and includes Apple Intelligence capabilities — all of which was speculated by Bloomberg and other reports. Unlike its predecessor, the iPhone SE, the iPhone 16e doesn’t have a home button and has Face ID enabled.
Earlier this month, Bloomberg reported that iPhone SE, 14, and 14 Pro inventory at Apple stores was running low — possible signs that an upgrade was coming.
Apple also announced its first in-house cellular modem, C1, which is featured in the new iPhone 16e. The new chip replaces a component previously supplied by Qualcomm (QCOM-1.00%).
“iPhone 16e packs in the features our users love about the iPhone 16 lineup, including breakthrough battery life, fast performance powered by the latest-generation A18 chip, an innovative 2-in-1 camera system, and Apple Intelligence,” Kaiann Drance, Apple’s vice president of worldwide iPhone product marketing, said in a statement. “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.”
The singular back camera is 48-megapixels, and has an integrated 2x Telephoto lens that makes it “ like having two cameras in one, so users can zoom in with optical quality,” Apple said.
In January, analysts at Jefferies (JEF-3.76%) downgraded Apple stock to “Underperform,” citing concerns including “limited traction” for the rumored new iPhone. While the iPhone 16e was expected to have one rear camera, the older iPhone 13 Pro and 14 Pro both have three cameras. That could make them more attractive options — especially if they have a lower price tag — despite artificial intelligence features in the new iPhone, Jefferies said.
The iPhone 16e could help Apple’s iPhone sales after it missed iPhone revenue expectations for the first fiscal quarter. Despite this, the company called it Apple’s “best quarter ever.”
The tech giant reported $69.1 billion in net sales for the iPhone, while analysts had expected $70.7 billion, according to FactSet (FDS-0.11%). The company’s greater China revenue for the first quarter was down by 11% year over year.
On the company’s earnings call, Cook noted that Apple had better results in markets where it has rolled out Apple Intelligence compared to markets that don’t yet have the AI features.
The iPhone 16e starts at $599 — hundreds of dollars less than the iPhone 16, which starts at $799. Pre-orders for the device, which is available with a matte finish of either black or white, start on February 21. The iPhone 16e will be available starting on February 28.