Apple has officially released a new lower-cost phone, but it’s not simply a replacement of its affordable iPhone SE line. The iPhone 16E, as it’s called, is the cheapest iPhone Apple currently sells. It trims some of the features off the iPhone 16 for a cheaper premium device, but is notably pricier than the budget iPhone SE series. So, who is the iPhone 16E for?
The $600 starting price of the iPhone 16E puts it out of reach for many budget iPhone fans (by comparison, the 2022 iPhone SE was priced at around $430). Instead, Apple has added an option below its premium lineup, much like Android phone makers have done with the $650 Samsung Galaxy S24 FE and the $500 Google Pixel 8A. Perhaps most importantly, the iPhone 16E is now the cheapest device with Apple Intelligence — and connects to Apple’s Emergency SOS satellite texting service.
Even priced out of the budget market, there are a handful of ideal customers for the new cheapest iPhone. The most obvious are consumers who want Apple’s clean phone and OS design, but are tired of the decade-old screen and home button tech in the iPhone SE line. The iPhone 16E has a full-front 6.1-inch XDR OLED display design with modern features like a 48-megapixel main rear camera, starting 128GB of storage and a USB-C port. It’s a current phone with just enough neat specs to not feel dated when you buy it.
The next category of buyers are those who rightly feel the sting in the wallet when paying $800 or more for an iPhone 16. At $200 cheaper, the iPhone 16E keeps the same A18 chip and storage options as its pricier iPhone 16 sibling while trimming some features like the 12-megapixel ultrawide rear camera, Dynamic Island, faster 25-watt wireless charging with MagSafe (iPhone 16E has a paltry 7.5 watt and no magnetic capability) a few video modes like spatial video and connectivity like mmWave 5G, Wi-Fi 7 and Ultra Wideband. But overall, those are nice-to-have perks that are easily lost for a 25% discount.
This cheaper price could also lure back some former iPhone owners who felt Apple’s premium phones got too pricey, while also feeling stiffed by the dated design in the iPhone SE line.
Sadly, the iPhone 16E is also probably the best choice for buyers deliberately looking for the newest version of an iPhone SE — and finding no other options in the Apple store. In a blow to budget iPhone fans, Apple has removed the iPhone SE (2022) from its online store (and likely retail stores to follow), meaning they’ll have to pick up their next low-cost iOS device at a third-party retailer or get a refurbished one. Folks who wander into an Apple store or go online looking for new affordable phones will have no choice but to pick up the iPhone 16E.
Lastly, there may be some out there who are Apple Intelligence-curious but don’t want to spend $800 or more to get in on the new tech. With the A18 chip, the iPhone 16E can run Apple’s generative AI features, and will presumably have access to all the features in and coming to the company’s pricier premium phones.
Overall, the iPhone 16E represents a seismic shift for Apple in modernizing its lowest-priced phone, but its higher price leaves behind more budget-conscious buyers. If this is an evolution of the iPhone SE line, it’s also losing what made that phone series great: dependable phones with decent specs that could last half a decade or longer for half the price of Apple’s basic premium handsets.
Watch this: iPhone SE 4 vs. iPhone 17 Air Rumors: Does Size Matter Over Cost?
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