Apple Launches the iPhone 16E With AI Capabilities
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20 Feb 2025 06:48:48 am.
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Apple (AAPL) on Wednesday unveiled the iPhone 16e, a lower-cost version of the iPhone 16 that comes equipped with Apple Intelligence tools.
The “newest member of the family” teased by CEO Tim Cook on X last week, will start at $599 and become available on Feb. 28.1 That’s cheaper than the iPhone 16’s $799 price tag, and the even pricier Pro, Plus, and Pro Max models.
At a time when phone-makers have bet their success on implementing custom artificial intelligence features into their devices faster than their rivals, Apple makes it clear that its AI isn't limited to its expensive flagship devices. Powering the iPhone 16E is Apple's A18 chip (the same one found in the iPhone 16 and 16 Plus) so it can run Apple Intelligence. This makes the new Apple phone a rarity: a sub-$600 device that can run the same AI features as its more expensive siblings.
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The 16e announcement also comes after reports that Alibaba (BABA) is partnering with Apple to bring Apple Pay to iPhones in China. Apple has reportedly submitted AI features developed with Alibaba to Chinese regulators for approval, a process that could take several months.
Shares of Apple were little changed in intraday trading Wednesday. They've added about a third of their value over the past 12 months.
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