Apple has announced a new iPhone which brings artificial intelligence (AI) features at a lower cost than its flagship handsets. The iPhone 16e has the same processor as the larger iPhone 16, Apple said, with similar storage options, though a lower spec elsewhere, including fewer cameras. Apple has been struggling to find a new product that excites consumers – sales of iPhones dropped at the end of last year. It will be hoping that bringing enhanced AI functionality to a less expensive phone will address that – however analysts have been cautious about the sales boost such tools bring. Its name is clearly a nod to its iPhone SE series, which were released from 2016 to 2022, and similarly priced significantly lower. Apple said the iPhone 16e will be available for pre-order from February 21 in 59 countries and will launch in the UK for £599, which is £200 less than the iPhone 16 – but more than double what the original iPhone SE went for when it launched in 2016. “This now becomes one of the most affordable powerful iPhones now on the market,” industry analyst Paolo Pescatore told BBC News. “The move should help accelerate adoption and especially its foray into AI with Apple Intelligence. “Apple’s trust and credibility is critical – this alone will help drive sales and lure users from rival devices and platforms.”
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