So, why is the iPhone 16e so expensive, and what does that mean for its future? Let’s break it all down.
After what feels like years of speculation, Apple has finally announced its newest lower-cost iPhone — the iPhone 16e. I say “lower cost” with a very big caveat, though. While the iPhone 16e is notably cheaper than the iPhone 16, the $599 price tag means that the 16e is not what we’d traditionally call a “cheap” phone.
Currently, our list of the best budget phones cuts off at around $500 — which is no small amount of money. But with flagship devices starting at $799 and climbing well beyond $1,000, a $500 phone doesn’t seem too unreasonable — especially if you spread the cost over 2–3 years. Still, Apple’s choice to price the iPhone 16e at $599 raises eyebrows, making us question whether the company is truly courting budget-conscious buyers anymore.
Why Offering a “Cheaper” iPhone Matters
iPhones are Apple’s bread and butter — that’s not up for debate. During Apple’s Q1 earnings call in January 2025, the company confirmed that iPhone sales accounted for a whopping $69.1 billion — over half of its total revenue of $124.3 billion. Clearly, Apple’s business model relies heavily on moving as many iPhones as possible.
But selling hardware is just one piece of the puzzle. In recent years, Apple has shifted focus toward services and digital revenue streams. From Apple Music to iCloud subscriptions, and the cut it takes from every transaction on the App Store and Apple Pay, Apple’s ecosystem is designed to keep money flowing long after a customer buys an iPhone.
In the last quarter of 2024, services revenue hit $26.3 billion — nearly as much as all Mac, iPad, Apple Watch, and AirPods sales combined. The math is simple: the more iPhones Apple sells, the more people buy into its ecosystem — boosting digital revenue.
Here’s the catch: not everyone can afford an iPhone 16 or Pro model. That’s where lower-cost iPhones, like the iPhone SE, traditionally came in — giving budget-conscious buyers a way into Apple’s world. At $429, the iPhone SE 3 played this role perfectly.
But now? At $599, the iPhone 16e feels less like a “budget” option and more like a compromise between affordability and tech. Let’s dive into why it’s so expensive.
Why Is the iPhone 16e So Expensive?
Looking at the iPhone 16e’s specs, the price starts to make a little more sense — though it doesn’t make it any easier to swallow.
Here’s what you’re not getting with the iPhone 16e:
- No MagSafe — Apple’s signature magnetic wireless charging is absent.
- No mmWave 5G — You still get sub-6GHz 5G, but the fastest millimeter-wave version is missing.
- Slightly less powerful GPU — The A18 chip is here, but with a reduced graphics core compared to the iPhone 16.
- No Dynamic Island — Unlike the iPhone 16, there’s no interactive “notch” at the top of your screen.
But the real kicker is how much you are getting. The iPhone 16e packs quite a punch with features that used to be exclusive to higher-end models:
- Apple Intelligence — Yes, the iPhone 16e fully supports Apple’s new AI-powered tools, including Visual Intelligence — something the iPhone 15 can’t even run.
- 48MP Fusion camera lens — This is a massive leap from the SE’s 12MP camera.
- Action button — Previously limited to Pro models, now on the 16e.
- Ceramic Shield glass — Boosting durability.
- IP68 water and dust resistance — High-end protection against the elements.
- Satellite connectivity — A feature often reserved for premium models.
In short, the iPhone 16e is a powerhouse. It’s not as bare-bones as the SE lineup — it’s basically an iPhone 16, minus a few flashy extras.
So what’s the problem?
The Price Problem: Is $599 Too Much?
The issue isn’t whether the iPhone 16e is “good enough.” It clearly is. The problem is that $599 alienates the exact audience the phone is meant for — budget-conscious buyers who want an affordable iPhone.
The iPhone SE was $429. That sub-$500 price point was a sweet spot for people who couldn’t justify a flagship iPhone but still wanted the iOS experience. By pushing the 16e to $599, Apple risks pricing out those buyers.
Who, exactly, is the iPhone 16e for?
- People who want a cheaper iPhone — but not that cheap.
- Those who want modern features — but don’t need the absolute latest tech.
- Android switchers looking for a mid-tier iPhone — though the higher price might push them back to Samsung or Google.
The iPhone 16e feels less like a successor to the SE and more like a stripped-down iPhone 16. That’s fine for some buyers, but it creates a pricing gap where a true “budget” iPhone used to be.
Also Read: iPhone 16e vs iPhone 16: Which One Should You Buy?
Conclusion: A Good Phone at the Wrong Price?
There’s no denying the iPhone 16e is a solid phone. It has impressive features, modern tech, and access to Apple Intelligence — all for $200 less than the iPhone 16.
But Apple seems to have missed the mark on price. By jumping from $429 to $599, the iPhone 16e risks losing its identity as the “affordable iPhone.” Instead of being a gateway into the Apple ecosystem for budget-conscious buyers, it’s now a mid-range phone that feels just a little too expensive.
Apple’s strategy seems clear — push people to spend a bit more, whether it’s for the 16e or the full iPhone 16. But that leaves a lot of users behind — the same people who would’ve happily bought an iPhone SE just a year ago.
Maybe Apple’s gamble will pay off. But at $599, the iPhone 16e feels like it’s stuck in the middle — too expensive for budget buyers, too basic for premium shoppers.
Let’s see if the sales figures prove Apple right… or if this “budget” iPhone ends up being a tough sell.
