Apple’s $599 iPhone 16E is the biggest refresh ever for the company’s lower-cost phone, formerly called the iPhone SE, and it couldn’t arrive at a better time. With generative AI requiring beefier specs, and US tariffs on imports from China possibly bringing an increase in costs, Apple’s entry-level iPhone might provide enough new features to be worth the upgrade, even with its substantial $170 price bump over the $429 iPhone SE from 2022.
Economic considerations aside, the iPhone 16E represents the rare time when Apple rethinks its entry-level phone. The last iPhone SE refresh, in 2022, primarily added 5G connectivity and the processor of the iPhone 13. This allowed the iPhone SE to capably access faster cellular speeds and run most apps. But compared with similarly priced 2025 Android phones, Apple’s iPhone SE was woefully behind. New Android phones costing $500 or less have large 120Hz refresh rate displays, 50-megapixel main cameras and support for wireless charging. Meanwhile, the iPhone SE has languished, with a dated design that hearkens back to 2017’s iPhone 8. And due to its Lightning port, the SE can’t be sold in European Union countries now that phones are required to support USB-C.
This makes a new, 2025 entry-level iPhone not only welcome but also necessary for Apple’s success this year. It should allow Apple to re-enter markets like the EU with a lower-priced iPhone option while providing a device that feels new enough for cost-conscious shoppers who want to get a longer-lasting smartphone before an inevitable creep in prices.
In Apple’s iPhone 16E announcement video, the company shows the new phone using various Apple Intelligence features, including a request for its ChatGPT integration to help create a dinner party.
The iPhone 16E is a big opportunity for Apple Intelligence
Apple Intelligence — the company’s suite of AI features — appears to be driving Apple to refresh its entry-level devices with more powerful hardware to increase adoption. This already includes the new $499 iPad Mini that comes with an A17 Pro processor — which is the same as the one in the iPhone 15 Pro — as well as relaunching the Mac Mini desktop computer with a $599 model that comes with 16GB of memory.
Apple took the same strategy with the iPhone 16E, which has an A18 processor that can run Apple Intelligence while pulling back other features, like having a single rear 48-megapixel camera paired with a 12-megapixel selfie camera, to hit a lower cost. Apple’s foregoing the Dynamic Island, which features prominently in the rest of Apple’s current iPhone lineup, and omitted faster MagSafe wireless charging for the slower 7.5 Qi wireless charging seen on the last iPhone SE (the phone’s USB-C port charges at 20W speeds).
But in exchange for those compromises, the iPhone 16E has an enhanced Siri assistant, Visual Intelligence, generative emoji, text editing tools and ChatGPT integration in Siri. And in a nice plus, the iPhone 16E includes the Action Button that can be customized for a number of shortcuts.
In European Union countries, the iPhone 16E will be the cheapest phone that Apple sells at 699 Euro (thanks to its inclusion of USB-C). Currently the 849 Euro iPhone 15 is the most affordable phone Apple sells in the EU because it’s the first model to include a USB-C port.
The iPhone 16E features a single rear 48-megapixel camera and a 12-megapixel selfie camera.
Apple’s lower-cost focus arrives just as tariffs loom
Apple’s entry-level iPhone refreshes have a knack for arriving during turbulent economic moments. In April 2020, Apple launched a refreshed $399 iPhone SE during the early throes of the COVID-19 pandemic. According to Counterpoint Research, that phone alongside the iPhone 11 helped sustain the company during a time when smartphone sales were expected to decline.
And now in 2025, a new 10% US tariff on goods from China could mean a corresponding increase to the cost of electronics. That tariff along with other rising costs expected for groceries and other goods may lead families to take a more conservative approach to their personal budgeting.
This makes the iPhone 16E’s launch a particularly opportune moment, as a more affordable phone option that will get years of iOS software updates. However, by launching the iPhone 16E at a price that’s well over $500, in some ways we are already seeing this price creep on the entry-level side of Apple’s iPhone portfolio. The $429 iPhone SE (2022) is no longer for sale on Apple’s website, meaning that $599 is now the lowest amount of money you can spend for a new iPhone. If you want an iPhone for less, your only options are in the used and refurbished market going forward.
This also means that Apple’s new iPhone 16E faces competition from Android phone rivals like the $650 Samsung Galaxy S24 FE, the $600 OnePlus 13R and the $499 Google Pixel 8A. All three of these Android phones have their own take on the same strategy as the iPhone 16E, offering access to just enough power for apps and AI, but scaling back on certain hardware features in order to hit lower prices.
Graphic detailing various iPhone 16E features.
Apple needs to refresh its entry-level iPhone more often
Apple’s record for providing consistent options for budget-minded customers has been sporadic at best. Samsung, Motorola and Google release new lower-priced phone options every year, while Apple’s multi-year approach takes its entry-level phones to the verge of stagnation.
The iPhone SE (2022)’s lack of AI support and a USB-C port for the EU are likely driving factors for Apple releasing the iPhone 16E — more than actually serving a market need. And by launching the 16E at a price well above $500, Apple’s certainly not targeting the truly price-conscious who want a new phone for the lowest-possible cost.
Watch this: I Got an Inside Look at Apple’s iPhone 16 Audio and Video Labs
The name change from iPhone SE to iPhone 16E might indicate a willingness from Apple to iterate on its entry-level more often, but that’s not guaranteed. Way back in 2013, Apple’s $549 iPhone 5C presented a similar lower-cost alternative to that year’s iPhone 5S, but Apple did not follow that up with annual refreshes.
If Apple did iterate more consistently on the entry-level side of its iPhone lineup, it’s quite possible that the company could dominate the more affordable end of the market. Instead, Apple cedes this space the most to Samsung, whose $200 Galaxy A models often take a spot in the top 5 best-selling phones in the US – the top four spots on that list were all iPhone models.
Whether Apple wants to refresh its entry-level iPhones or simply needs to update it, the iPhone 16E could be the ideal option for people who “just want an iPhone” with modern features for hundreds less than Apple’s current flagship models.
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