Apple unveils cheaper iPhone 16e powerful enough to run AI

Core Viewpoint - Apple is launching a new lower-priced iPhone model, the iPhone 16e, priced at $599, to stimulate growth in its iPhone sales amid mixed performance in recent quarters [1][4]. Product Features - The iPhone 16e features a modern design without a home button or fingerprint sensor, utilizing FaceID and a sensor notch at the top of the screen [2]. - It is powered by Apple's A18 chip, allowing it to run the same apps and games as the more expensive iPhone models [2]. - The device includes Apple's first cellular modem, named C1, and has a single camera lens compared to the multiple lenses on higher-end models [3]. Market Context - Apple's overall iPhone sales declined by 1% year-over-year for the December quarter, although the company still generated over $69 billion in iPhone sales during that period [4]. - The introduction of low-cost iPhones is crucial for Apple as it helps attract new customers into its ecosystem, with the iPhone 16e being the most affordable model to access Apple Intelligence features [5]. - Current models include the iPhone 16 starting at $799 and the iPhone 16 Pro starting at $999, with the iPhone 16e positioned as a more accessible option [5].