Apple has unveiled the iPhone 16e, a budget-friendly smartphone priced at$599, aimed at mid-market customers in key regions such as China and India.

The launch marks Apple's attempt to revitalise declining sales and better compete with Android rivals like Samsung and Huawei, which are also adding artificial intelligence tools to their devices.

Designed as a successor to the SE series, the iPhone 16e incorporates features closer to flagship models, including the A18 chip for AI functions powered by Apple Intelligence.

Though missing a wide-angle lens and a camera control button, the 16e sports a 48-megapixel dual-camera system, a 6.1-inch display, and Apple's Face ID. It also introduces the C1 chip, the company's first in-house modem for cellular connectivity.

The iPhone 16e, available only in black and white, costs$200 less than the base iPhone 16. Analysts believe it will appeal to cost-sensitive markets where upfront payments are common. Pre-orders open on February 21 across 59 countries, with shipping set to begin on 28 February.

Apple forecasts stronger sales growth as it integrates AI features into more regions, although adoption has been slow. The 16e may provide a cost-effective entry point for customers seeking Apple's latest technology without the premium price.

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