Apple Launches Cheaper iPhone with AI Features to Boost Sales
Apple has introduced a new, more affordable iPhone called the iPhone 16e, which includes advanced AI features usually found in its pricier models.
According to the BBC, the iPhone 16e has the same powerful processor as the flagship iPhone 16 but comes with fewer cameras and lower specs in other areas. This move comes as Apple tries to reignite consumer interest after a drop in iPhone sales at the end of last year.
The BBC reports that the iPhone 16e will cost £599 in the UK, which is £200 cheaper than the iPhone 16 but more than double the price of the original iPhone SE released in 2016.
Pre-orders for the new phone start on February 21 in 59 countries. Industry analyst Paolo Pescatore told the BBC that this could become one of the most affordable yet powerful iPhones on the market, helping more people access Apple’s AI technology.
However, some experts are skeptical about how much consumers really care about AI features. Cory Johnson, a market strategist, pointed out that Apple has spent $189 billion on AI over the past decade but has little to show for it beyond products like the HomePod and Vision Pro headset.
“AI should be right in Apple’s wheelhouse, but fans and investors have every right to be disappointed so far,” he told the BBC.
The iPhone 16e also marks a big step for Apple in terms of technology. For the first time, the company is using its own modem design instead of relying on chips from Qualcomm or Intel.
This could save Apple money on licensing fees and give it more control over its technology, a goal CEO Tim Cook has had since 2009.
The BBC highlights that the iPhone 16e is “built for Apple Intelligence,” featuring tools like photo editing and improved image searches.
It also integrates OpenAI’s ChatGPT into Siri, though Apple has faced some hiccups with AI, such as generating false news headlines. The company now presents AI summaries in italics to avoid confusion.
Analysts believe the iPhone 16e could attract new customers, especially in markets like India where Apple products are often too expensive.
Dipanjan Chatterjee, a principal analyst at Forrester, told the BBC that this phone could bring more people into Apple’s ecosystem and encourage upgrades from older models.
Apple is clearly targeting owners of older iPhones, with its website urging users to upgrade by comparing the iPhone 16e’s specs to models dating back to 2019. “There’s never been a better time to upgrade,” the company says.
While the iPhone 16e offers a cheaper way to access Apple’s AI features, it remains to be seen if this will be enough to boost sales.
As the BBC notes, Apple is betting big on AI, but whether consumers will embrace it as enthusiastically as the company hopes is still uncertain.
For now, the iPhone 16e represents a bold step in making advanced technology more accessible to a wider audience.
Credit: BBC
https://www.bbc.com/news/articles/cvgw30dr0w3o