Apple (AAPL) officially announced the iPhone 16e on Wednesday, a new budget-friendly smartphone aimed at reviving handset sales. The news, which had been widely anticipated, had little impact on Apple stock, which saw only a modest change.
The Cupertino, California-based tech giant says the iPhone 16e packs cutting-edge technology into an affordable device, replacing the third-generation iPhone SE with a revamped design and upgraded specs. The phone also supports Apple Intelligence, the company’s branding for its AI-powered features.
Wall Street analysts believe the iPhone 16e could help Apple gain traction in price-conscious markets, particularly China, where Apple has struggled to maintain sales momentum.
In Apple’s fiscal first quarter (ending Dec. 28), iPhone revenue fell 0.8% year-over-year to $69.14 billion, with notable weakness in China. However, Apple pointed out that sales were stronger in regions where Apple Intelligence features were available.
The iPhone 16e is powered by Apple’s A18 processor and features the Apple C1—the first cellular modem designed in-house by Apple. Other key specs include:
Apple will begin taking preorders for the iPhone 16e on Friday, with the official launch set for Feb. 28. The device starts at $599, making it significantly cheaper than the base iPhone 16 model, which starts at $799.
Apple stock edged up 0.2% to $244.87 following the announcement.
Evercore ISI analyst Amit Daryanani noted that the launch could provide an incremental boost for Apple, mirroring previous SE cycles. The last iPhone SE debuted in 2022.
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