Apple's release of a new lower-end iPhone model with a steep price tag has raised eyebrows.
The new iPhone 16e, a more powerful and feature-rich version of the SE, starts at $599–a 40% increase over the $430 price of the SE, the Associated Press reported.
Users who want more storage will pay considerably more. an iPhone 16e with 256 GB of memory will cost $699 and 512 GB will cost $899, which is more than the lowest priced iPhone 16.
Apple vice president Kaiann Drance says the new model completes "the lineup as a powerful, more affordable option to bring the iPhone experience to even more people."
The device includes a souped-up chip to support artificial intelligence (AI) features like text summarization, enhanced Siri, and better camera and battery performance.
It also features a 6.1-inch display and facial recognition.
The 16e version is only $200 less expensive than the standard iPhone 16 which starts at $800.
Consumers shared their thoughts about the pricing on X.
"Microsoft dropped quantum computing an hour ago and you guys are rebranding the iPhone," remarked commenter, Culture Critic.
Microsoft dropped quantum computing an hour ago and you guys are rebranding the iphone 💀
— Culture Critic (@Culture_Crit) February 19, 2025
"Repackaged iPhone XR with a f--king AI assistant," wrote Lashy Bills who ended the post with a clown emoji.
"Apple every year," remarked user The Random Guy.
Apple every year 😭 pic.twitter.com/RWf40zvR5B
— The Random Guy (@RandomTheGuy_) February 19, 2025
"Congrats!," commenter jjjound said.
Congrats! pic.twitter.com/IASCfi1Mbc
— jjjjound (@joele8485) February 19, 2025
Apple's AI rollout has faced delays, particularly in China where it hasn't released specific dates for a launch.
Apple shares were little moved on Thursday but were trading down more than 5% from December's $260 peak.
