Apple unveils a souped-up and more expensive version of its lowest priced iPhone

Core Viewpoint - Apple has launched the iPhone 16e, a more advanced and pricier version of its entry-level iPhone, aiming to attract a broader audience for its artificial intelligence technology, which is crucial for revitalizing demand for its flagship products [1][5]. Product Details - The iPhone 16e is the fourth generation of a budget model, previously known as the iPhone SE, with the last version released in 2022 [2]. - It features an upgraded computer chip that supports various AI functionalities, including text and audio summarization and enhanced virtual assistant capabilities [3]. - The starting price for the iPhone 16e is set at $600, representing a 40% increase from the previous iPhone SE's price of $430, yet it remains cheaper than the standard iPhone 16 priced at $800 [4]. Market Strategy - Apple aims to provide a more affordable iPhone option to expand its customer base while balancing the need to protect its higher-end product sales [6]. - The company has faced challenges in rolling out its AI features, which have not yet been fully available in the U.S. and are still pending in some global markets [7]. Sales Performance - Apple experienced a slight decline in iPhone sales during the last holiday season compared to 2023 levels, partly due to delays in the availability of its AI technology [8]. - The company has been losing market share in China, where the AI features have not been specified for release, although a partnership with Alibaba may facilitate their introduction in the spring [9]. Design Changes - The iPhone 16e features a 6.1-inch display, larger than the 4.7-inch display of the previous SE model, and eliminates the home screen button, incorporating facial recognition technology instead [10]. Stock Performance - Following the announcement of the iPhone 16e, Apple's shares rose to approximately $245, still below the peak price of around $260 reached in late December [11].