Apple launches budget-friendly iPhone 16e with Apple Intelligence and ditches the home button

Successor to the iPhone SE aims to bring some flagship features to more users

The Apple iPhone 16e features a 6.1-inch (15.5cm) screen, on a par with the base iPhone 16. Photo: Apple

Apple on Wednesday unveiled the iPhone 16e, a redesigned device positioned to bring flagship features, including Apple Intelligence, to more users at a lower price.

The successor to the iPhone SE shares the same shape as the mainline iPhone 16 series and features a 6.1-inch (15.5cm) screen, on a par with the base iPhone 16, but with a notch instead of Dynamic Island and, most notably, without the home button, one of Apple's signature hardware features that housed its Touch ID biometric technology.

The home button was hugely popular as it was a convenient way to unlock iPhones, replace password inputs and authorise transactions such as Apple Pay. When it was removed from the iPhone X in 2017, a good segment of the Apple user base still favoured it over Face ID – which is the iPhone 16e's security and authentication method.

The iPhone 16e utilises Apple's in-house A18 processor, which is also used in the current-generation iPhone 16. Its battery will last up to 12 hours longer than the iPhone SE models, Apple said.

The company also added a new C1 chip, the first modem designed by Apple that brings faster 5G connectivity and more power efficiency, according to Apple.

The device will come in 128GB, 256GB and 512GB models, with prices starting at Dh2,599. For comparison, the base iPhone 16, also with 128GB of storage, starts at Dh3,399. The UAE will be among 59 countries that can start ordering the devices on Friday, and its general release will be on February 28.

Other top-tier features on the iPhone 16e include a 48MP camera sensor, which Apple has been using since the iPhone 14 Pro, and the Action Button, which can be customised to trigger a specific function, including Apple Intelligence. The new device does not have the Camera Control side button introduced in the iPhone 16 series.

Apple Intelligence on the iPhone 16e puts it among a handful of Apple devices where the generative AI platform is available. These include the iPhone 15 Pro models and the entire iPhone 16 series.

The California-based company also said it will be expanding Apple Intelligence's language support to 10 more by April – Simplified Chinese, India English, Singapore English, French, German, Italian, Japanese, Korean, Brazil Portuguese and Spanish.

“The SE series [now e] has long served as an affordable entry point into the Apple ecosystem, helping expand iPhone adoption,” Varun Mishra, a senior analyst at Counterpoint Research, said ahead of the launch.

The iPhone SE has been particularly popular in Japan and the prepaid segment in the US, the Hong Kong-based research firm said.

“With its compact design and lower price point, it appeals to users who prefer smaller devices without top-tier specifications … helping Apple broaden its user base while driving service revenue growth and cross-selling Apple Watch, AirPods and other accessories,” Mr Mishra said.

The first iPhone SE was introduced in 2016 alongside the iPhone 6s, and spawned two more iterations in 2020 and 2022. It received generally favourable reviews thanks to its performance at a lower cost.

The home button's removal is also a full-circle moment: the original iPhone SE, along with the iPhone 6s, were the last devices to feature the 3.5mm headphone jack.

With the rise of generative AI, smartphone manufacturers are scrambling to incorporate the latest technologies to entice a wider consumer base. Apple partnered with ChatGPT maker OpenAI last year and eventually launched Apple Intelligence to throw its hat into the generative AI arena.

That put it in a head-to-head battle with Samsung Electronics, the world's biggest mobile phone manufacturer, which introduced its Galaxy AI last year and partnered with Google at the launch of the Galaxy S25 series earlier this year.

Apple remains a favoured brand among consumers. The iPhone 15 was the world's top-selling smartphone in 2024, continuing a streak since 2018 and outclassing competition that is largely focused on capitalising on the steady rise of generative AI in mobile devices, Counterpoint said in a report this month.