Apple took the wraps off of its low-end iPhone 16e priced at $599 as it attempts to revive sluggish growth by including advanced AI tools.

Apple is attempting to better compete against AI-enabled devices from Google and Samsung, but at a lower price point than its high-end iPhone 16 models.

The iPhone 16e lays to rest the iPhone SE first introduced in 2016 and updated three years ago. Bloomberg reported it will cost $170 more than an SE due to advanced features such as the same A18 Pro chip used in the iPhone 16 devices announced in September.

The A18 chip is built with second-generation 3nm transistors and is 20 per cent faster than the A17 chip used in previous phones. 

It is also the first iPhone to use the C1 chipset developed internally by Apple.

The iPhone 16e has enough compute power to run Apple Intelligence, the software set of AI tools that includes access to OpenAI’s ChatGPT.

It features a 6.1-inch OLED display, a single 48MP rear camera and a 12MP front-facing camera.

Kaiann Drance, VP of worldwide iPhone product marketing, stated the 16e is optimised for longer battery life. It lasts up to six hours longer than an iPhone 11 and up to 12 hours longer than all generations of iPhone SE.

It comes equipped with the same Action button as the iPhone 15 Pro and iPhone 16 lines. The Action button allow users to access a variety of functions.

It is available in two colours, black and white, and is available for pre-ordering on 21 February with shipping slated for 28 February.

The new smartphone does not include support for MagSafe cases, wallets and wireless chargers. It does have wireless charging capabilities up to 7.5W.

It does not have support for ultra-wideband technology but does include satellite-based texting to friends and family and support for SOS messaging.

Analyst Paolo Pescatore said the new model “should help accelerate adoption and especially its foray into AI with Apple Intelligence”.

“Apple’s trust and credibility is critical. This alone will help drive sales and lure users from rival devices and platforms,” he said.

As part of its lineup shift, the iPhone SE and iPhone 14 are no longer available.

Apple’s smartphone revenue in fiscal Q1 2025 (the period to 28 December 2024) was $69.1 billion, flat year-on-year. Sales in China fell by 11.1 per cent to $18.5 billion.