Prime Highlights:
iPhone 16e set to be released in September.
The new iPhone 16e consists of Apple’s FaceID scanner and modern design which includes a sensor notch at the top of the screen.
Key Background:
On Wednesday, Apple announced a new iPhone model which is priced lower than its main iPhone models and is set to be released in September. The new iPhone is called iPhone 16e and is priced at $599 when it hits the market later this month.
The new iPhone 16e consists of Apple’s FaceID scanner and modern design which includes a sensor notch at the top of the screen. Home button and fingerprint sensor are absent in the new iPhone. The main iPhone 16 models consist of Apple’s A18 chip. The new version of the processor means that the iPhone 16e can run all the same apps and games that all iPhones can run and it comes in black and white. The phone also includes Apple’s first cellular modem, which it calls C1. iPhones have used Qualcomm modems for the past few years and it consists of single camera lens, versus as many as three on the most advanced iPhones.
Apple will introduce a new, lower-cost iPhone model to counter sagging sales in recent quarters and the company’s attempts to speed up growth in its most profitable product category. iPhone sales during the December quarter declined 1% from the same quarter last year, despite the fact that the company still generated over $69 billion in revenue from iPhone sales during the quarter. The budget phone is used to onboard new customers to the Apple ecosystem. It will include Apple Intelligence which includes features like image creation and summary notifications.
Apple’s latest iPhone lineup is accompanied by the iPhone 16 at $799 and iPhone 16 Pro at $999. Prior to Wednesday, Apple Intelligence included only iPhone 16 and iPhone 15 Pro models. Each year since 2016, Apple has been coming out with a more affordable model of iPhone the most recent being the iPhone SE. The iPhone SE got an update in 2020 and 2022, with design similar to the older ones but featuring newer technologies like newer processors to try and pave the way for upcoming software updates. When Apple sells out the previous model of the iPhone SE, they will cease making iPhones that have a fingerprint reader, and the new lower-cost phone will be priced at $429, which is less than the price of the iPhone 16e.
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