Is the iPhone 16E Apple’s Boldest Budget Bet Yet?

By Greg Collier

Apple has officially introduced a new addition to its iPhone lineup, unveiling the iPhone 16E with little fanfare but plenty of implications. While many were expecting the company to eventually update its most budget-friendly phone, this release brings more than just a name change. The latest model replaces the iPhone SE, modernizing Apple’s entry-level option while also raising questions about its longevity and Apple’s pricing strategy.

At first glance, the iPhone 16E seems to be a long-overdue improvement. It ditches the now outdated design of the SE, adopting a body reminiscent of the iPhone 14, complete with a matte glass back and aluminum frame. The screen is now a 6.1-inch display, meaning Apple no longer offers a truly small iPhone in its lineup. With this shift, the last remnant of the home button era is gone, signaling the official end of a defining design feature that had persisted for well over a decade.

One of the most significant changes comes under the hood. The device is powered by Apple’s latest A18 chip, the same one found in the iPhone 16 and 16 Plus, ensuring it can handle the new Apple Intelligence features rolling out across the company’s ecosystem. This makes it one of the most affordable phones capable of running these AI-driven enhancements, a rarity in a market where premium artificial intelligence capabilities are often locked behind flagship pricing. Additionally, Apple has designed a new 5G modem, the C1 chip, which boasts improved power efficiency. This combination of hardware advancements suggests a major focus on battery life, potentially making endurance one of the device’s strongest selling points.

However, while the iPhone 16E does bring notable improvements, it also comes with compromises. The lack of MagSafe support means slower wireless charging and no compatibility with Apple’s growing suite of magnetic accessories. The display, locked at 60Hz, already feels outdated compared to similarly priced Android devices that offer smoother refresh rates. There is no Dynamic Island, leaving the front-facing design largely unchanged from older iPhones. The rear camera is a single 48-megapixel sensor, capable of a 2x crop zoom, but without an ultrawide or telephoto lens. And, while color options have always been a part of Apple’s branding, this phone arrives in only two, black and white.

Perhaps the most glaring change is the price. The iPhone 16E starts at $599, a significant jump from the previous SE model’s $429 price tag. The increase places it in a strange position, more expensive than some competing budget-friendly phones but still noticeably cheaper than the mainline iPhone 16. The move raises an important question: is Apple slowly pricing out a portion of its user base that relied on the SE as a more affordable entry into the ecosystem?

With this new direction, another question lingers: what does the future hold for this model? Apple’s previous budget-conscious attempts, the iPhone SE line and the iPhone Mini, were both abandoned after a few iterations. Now, with the iPhone 16E replacing the SE, will it follow a similar fate? The name shift from SE to E suggests a fresh start, but whether Apple will commit to this product line for the long run remains uncertain. Will there be an iPhone 17E next year, or is this simply a transitional product designed to phase out lower-cost options altogether?

For now, the iPhone 16E represents an interesting shift in Apple’s strategy. It is a modernized alternative for those who found the SE outdated but aren’t willing to pay flagship prices. Yet, it also comes with trade-offs that may make some hesitant to upgrade. With preorders opening soon and its official release just around the corner, the real test will be whether consumers embrace this new model—or if it ends up as just another short-lived experiment in Apple’s evolving lineup.