Apple Bets on New iPhone with AI Features at a Lower Price

20.02.2025

Apple has introduced the iPhone 16e, a more affordable model featuring artificial intelligence (AI) capabilities, aiming to attract consumers looking for a budget-friendly yet powerful device. The new model shares the same A18 processor as the standard iPhone 16 but comes with fewer cameras and lower overall specifications. With iPhone sales declining in late 2024, Apple hopes this new approach will reignite consumer interest.

The iPhone 16e closely follows the pricing strategy of the iPhone SE series, offering a significantly lower cost than flagship models. It will be available for pre-order from February 21 in 59 countries, launching in the UK at £599—£200 less than the iPhone 16 but considerably more expensive than the original iPhone SE in 2016. Industry experts believe the device could accelerate Apple’s AI adoption while attracting users from rival brands.

Apple Intelligence, the company’s take on AI integration, plays a central role in the iPhone 16e’s appeal. The device supports advanced AI tools, including features that enhance writing, refine images, and integrate ChatGPT into Siri. Apple CEO Tim Cook emphasized that the model delivers “performance, intelligence, and privacy” in line with user expectations, aiming to make AI-powered experiences more accessible.

Despite these advancements, some analysts remain skeptical about AI’s impact on sales. Apple has invested $189 billion in research and development over the past decade, yet critics argue that its AI efforts have yet to deliver groundbreaking results. While the iPhone 16e lowers the barrier for users to enter Apple’s AI ecosystem, it remains to be seen whether this strategy will provide the sales boost Apple is hoping for.