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With support for on-device AI, Apple's new iPhone 16e comes with powerful hardware but at a price

Technology / news
With support for on-device AI, Apple's new iPhone 16e comes with powerful hardware but at a price
Apple iPhone 16e. Source: Apple
Apple iPhone 16e. Source: Apple

Without the usual fanfare, Apple has released an updated version of its entry-level iPhone, the 16e. This replaces the iPhone SE which quite a few acquaintances like because of its size and price, but which hasn't had a proper refresh since 2022.

Because the phone needs to run artificial intelligence (AI) locally, it has had a substantial hardware upgrade. To power Apple Intelligence, the iPhone 16e uses the latest-generation A18 system-on-a-chip with six-core central processing unit (CPU) and a four-core graphics processing unit (GPU), along with a 16-core Neural Engine AI and machine learning accelerator.

This is the same silicon design as in the current iPhone 16 range, and comes with 8 gigabytes of memory, with storage starting at 128 GB.

Because, you need that kind of resource muscle to run AI locally. The iPhone 16e also gets a single camera unit, the 48 megapixel Fusion, which has the clever two-times optical zoom built in. And yes, the iPhone 16e gets Satellite TXT support, a 6.1-inch Super Retina XDR screen, and battery life advertised as up to 12 hours longer than all generations of iPhone SE.

So, the iPhone 16e comes with uprated hardware, but it's hard to overlook that the US$599 price translated into a NZ$1199 starting cost. The iPhone SE can be had for $849 to $949 (64 and 128 GB versions), but its hardware won't be a patch on what's in the iPhone 16e of course.

However, the mid-range iPhone 16 is $400 more. Compared to the iPhone 16e, it gets you another graphics core, the Camera Control button on the side of the case, dual cameras with an additional 12 MPixel ultra-wide lens, macro photography, focus control, spatial photos and videos, the Dynamic Island notch and MagSafe charging at up to 30 Watts, instead of just 7.5 W Qi for the iPhone 16e.

Most of the features in the iPhone 16 are worth having, particularly the better camera system. This is not to suggest that the iPhone 16e isn't a good phone, but the need to run on-device AI means its price is not particularly entry-level. 

There's also the $1399 current iPhone 15, which has the prior generation A16 chipset, but a dual camera system and no Apple Intelligence AI.

All the above are first-world issues, but it will be interesting to see if on-device AI will appeal to entry level iPhone buyers.

Speaking of hardware, Apple has put it's first in-house designed modem, the C1, into the iPhone 16e. No more Qualcomm modems inside from now on. A modem, which is the integrated chip that handles the phone's 5G and Wi-Fi radios doesn't mean a whole lot for most users, but there's some history here.

Apple and Qualcomm (a big chip maker) fought each other in court for some time over licensing charges for the part. Intel tried and failed to come up with a viable modem design, so Apple decided to come up with its own which clearly wasn't easy as it took years. 

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6 Comments

Why does it feel like I'm the only one who wants to by a $300 smartphone, with ruggedisation, and not this expensive option? I recently took my phone (matching my stated preferences) to a repair place because the power/lock button is a little stuck. The guy told me it "wasn't worth repairing". Funny, I thought I was the arbiter of that; I repaired it myself.

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I don't think you're alone thinking that. Also, surprised you were turned away by the repairers, particularly with times being what they are.

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Some people spend half their life on the phone, in that case you may as well go top of the line. 

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"$1200" and "entry-level" are not terms I'd normally expect in the same sentence, even with Apple phones.

I use a Samsung basic A series that cost about $350, and it seems to do everything I need. 

I do miss my ruggedised little Unihertz Atom L, though, that I only replaced becasue I managed to break it so comprehensively. And it's USD249.

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iPhone 7, secondhand $200 approx 4yrs ago. Still works.

Unbelievable that people mortgaged to the hilt, car financed and worried about job security feel the need to buy this stuff. I’m now looking for a base SE around $300……

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The problem is battery life. Will cost 200 just to get Apple to replace the battery and you can’t buy offical batteries to replace the battery yourself. I have a newer se and just upgraded to a 16 pro. The difference is massive and fat nicer to use with  over 5 years of life via software updates. 

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