Apple has quietly introduced its newest budget smartphone, the $599 iPhone 16e. Unlike previous launches, there was no high-profile event or online presentation; instead, CEO Tim Cook simply announced the upcoming device via Twitter a few days before the official unveiling, which came through a press release.

The iPhone 16e isn’t what you would call groundbreaking; rather, it plays it safe. Drawing from the designs of earlier models, this device aims to be dependable while keeping production costs low. Its design closely mirrors that of the iPhone 13 and 14, featuring similar dimensions and a display notch at the top. While it adopts the Action button first seen in the iPhone 15, it notably lacks the Camera Control feature that the newer models boast.

From an innovation perspective, the highlight of the iPhone 16e is undoubtedly its custom C1 modem. While modems are typically unexciting and only come to the forefront when issues arise, this particular modem stands out because it marks Apple’s inaugural attempt at producing one in-house.

While the 16e shares many features with previous iPhone models, it also incorporates elements from Apple’s flagship line that help support its new naming strategy. One significant reason to abandon the well-known iPhone SE name is the inclusion of the powerhouse A18 chip, the same processor found in the standard iPhone 16.

This is crucial for a couple of reasons. Firstly, the 16e is priced $200 lower than the iPhone 16, which until now was the most affordable way to experience the A18 chip. Secondly, this strategy enhances future-proofing, as Apple is likely to support the A18 chip for a longer period compared to the A16 chip used in the iPhone 15.

In addition to regular updates and security patches, future-proofing includes Apple Intelligence, the new generative AI platform that Apple envisions as the future of the iPhone. Until recently, only the iPhone 16 and the premium iPhone 15 models could leverage this feature within the iOS ecosystem.

A Modern Interpretation of a Classic Design

However, it’s essential to recognize that the main attraction of the iPhone 16e lies in its pricing. Analysts believe that the lower price point could help Apple regain ground in vital markets such as China and India. A $200 price reduction from the entry-level iPhone isn’t monumental, but in developing regions where high-end flagships face challenges, every dollar matters.

Nevertheless, lower prices do not guarantee a surge in new iPhone users. Apple contends with fierce competition from local brands in China, a contest that is likely to intensify amid escalating trade tensions.

Complications in markets like India include the availability of older models such as the iPhone 14 and 15 in retail outlets. The discontinuation of the iPhone 14 makes purchasing a new device more difficult in the U.S., while the iPhone 15 remains officially available at a starting price of $699.

These factors cloud the iPhone 16e’s standing in Apple’s iPhone series. Although there is a $100 difference between the 16e and the 15, it is nowhere near the price disparities some Android brands maintain between their mid-range and flagship phones. Affordable Android devices are often plentiful. However, Apple’s approach means the iPhone 16e doesn’t fit neatly into the budget category as the company typically does not produce ‘cheap’ devices.

The 16e’s design, inspired by the iPhone 14, does not feel like a retro step as the last SE model might have when it was launched in 2022. Though it retains the display notch rather than adopting the Dynamic Island introduced in the 14 Pro, the overall design has not seen significant changes in recent years, making the 16e feel like a “modern” smartphone compared to previous SE iterations.

This design refresh will likely appeal to many buyers, though some may lament the loss of Touch ID in favor of Face ID technology. Additionally, the release of the 16e signals the end of smaller iPhone forms, as the last SE model featured a compact 4.7-inch display. With the 16e, Apple no longer offers an iPhone with a screen smaller than 6 inches.

The iPhone 15, iPhone 16e, and iPhone 16 all share a 6.1-inch Super Retina XDR display. While the screens are mostly identical, there are notable distinctions. The 16e retains a notch instead of featuring the Dynamic Island and offers a maximum brightness of 1,200 nits, in contrast to the other models that peak at 2,000 nits. All three devices share similar dimensions and weight.

Each model is equipped with a USB-C port as mandated by law, although the 16e does not include the MagSafe connectivity feature found on the back. However, it does support Qi charging at up to 7.5 watts, compared to the 15’s 15 watts and the 16’s 25 watts. Notably, the 16e boasts the longest battery life of any of the three, with a remarkable 26 hours, outdoing the 16’s 22 hours and the 15’s 20 hours. This impressive battery life is attributed to the new C1 modem, which is less power-hungry than older models and has a smaller footprint, allowing for a larger battery in the 16e.

Both the iPhone 16 and 16e are powered by the cutting-edge A18 chip featuring a six-core CPU and a 16-core neural engine. However, the graphics performance is slightly reduced in the 16e, which has a four-core GPU compared to the five cores on the 16. Each model starts with 128GB of storage, with options for expansion to 256GB or 512GB. Moreover, the 16 and 16e are equipped with 8GB of RAM, compared to the 6GB in the iPhone 15, providing a useful boost for on-device Apple Intelligence processing capabilities.

Innovative Design

Apple Intelligence currently offers features such as text rewriting, summarization, and generative imagery, created via Image Playground. Whether the prospect of accessing Apple’s response to Google Gemini is sufficient to choose the 16e over the less advanced iPhone 15 will depend significantly on individual preferences in its current state. However, it is clear that we are still in the early stages of this technology.

Apple is committed to its generative AI offering, positioned to be a focal point of updates for the foreseeable future. While I can’t guarantee any groundbreaking features shortly, it’s plausible that you might regret sidelining this technology in a couple of years.

Visual Intelligence, Apple’s counterpart to Google Lens, is also included in the 16e, although the absence of the Camera Control feature necessitates accessing it through the Action Button. More noteworthy than the lack of the Camera Control function is that the iPhone 16e features a single rear camera.

Apple downplayed this aspect during the announcement, instead showcasing what it refers to as a “2-in-1” camera system. Leveraging computational photography techniques, the iPhone 16e operates as a single-camera device that mimics the capabilities of a dual-camera system. This is made possible through a 48-megapixel sensor with “integrated telephoto,” which allows for a closer 12-megapixel view without significantly compromising image quality when zooming in.

Transitioning from a dual-camera setup to a single sensor inevitably results in a loss of versatility, even with advanced fusion technology. For some, this limitation may justify spending an additional $100 to $200 for the iPhone 15 or 16. Nonetheless, the 16e still captures impressive images for a single-sensor smartphone, representing a significant upgrade over the previous iPhone SE.

Choosing Your Essential Features

With every $100 price drop, you generally sacrifice certain features as part of the profit margin structure. Selecting the best “entry-level” iPhone in today’s lineup can be more complex than in previous years. It ultimately comes down to the specific features you require and what you’re prepared to forgo.

The 16e exemplifies the need to prioritize features. If having the latest technology is essential to you, consider spending the additional $200 for the regular iPhone 16. Conversely, if features like Apple Intelligence aren’t a priority, the iPhone 15 will meet your needs.

Ultimately, the differences between the iPhone 16 and 16e are narrower than one might expect. The 16e emphasizes Apple Intelligence by integrating the A18 chip and increasing RAM to 8GB. However, it makes compromises for affordability, omitting features such as MagSafe, Dynamic Island, Camera Control, and the dual-camera arrangement. If you can manage without these extras, you stand to save $200.