Apple bets on a cheaper iPhone with AI: Revolution or just polished misery?

Apple surprises again. The new iPhone 16e offers advanced artificial intelligence (AI) features at a price significantly lower than flagship models. According to some, this is a strategic move to revive customer interest and attract new users to the Apple ecosystem. What does the new iPhone offer, and is it truly revolutionary?

iPhone 16e: same performance, lower price

Apple has decided to equip the iPhone 16e with the same A18 processor as the more expensive iPhone 16 models. This means that even this 'cheaper' phone can handle demanding games, applications, and of course, AI features. However, the difference lies in other specifications – such as the number of cameras or the lower level of some components.

The main attraction, however, is the price. The iPhone 16e will cost 599 pounds in the UK, 200 pounds less than the base version of the iPhone 16. For comparison, the original iPhone SE in 2016 was only 269 pounds. Nevertheless, the iPhone 16e is one of the most accessible options for getting a powerful iPhone with the latest technologies.

Apple Intelligence: AI at your fingertips

One of the draws is the integration of AI under the name Apple Intelligence. This technology offers tools for more efficient work, such as photo editing, quick photo searches, or the integration of a ChatGPT chatbot into the Siri assistant.

Although AI features are not a complete novelty (competitive manufacturers already offer them), the iPhone 16e is the cheapest way to obtain them within the Apple ecosystem.

Proprietary modem: a step towards independence

An interesting novelty is the use of the proprietary C1 modem, which Apple designed and developed itself. Until now, it relied on chips from Qualcomm and Intel, which meant high licensing fees for them.

A proprietary modem not only reduces costs but also brings Apple closer to the vision that Tim Cook presented back in 2009 – to fully control the technologies in its products. This step could have long-term impacts on the entire industry, especially if Apple decides to offer its modem to other manufacturers.

Who is the target audience? India, upgrades, and new users

Apple is clearly targeting several groups of customers simultaneously. The first are those who have so far owned older models of iPhones. With the slogan "There's never been a better time to upgrade," Apple is enticing comparisons with models released since 2019.

The second target group is markets like India, where iPhones are too expensive for most people. The iPhone 16e could open doors to new customers as well, thus expanding Apple's user base.

Is the new iPhone worth it?

The iPhone 16e is an interesting compromise between performance and price. It offers advanced AI features, a proprietary modem, and the same processor as more expensive models, making it an attractive option for those who want to stay within the Apple ecosystem but don't want to spend as much.

Nonetheless, despite Apple investing an astronomical $189 billion into AI over the last decade, the results have not been as groundbreaking as one might expect. For example, the Vision Pro headset or the HomePod smart speaker did not achieve massive success.