A $599 iPhone 16e is a cruel joke

The $599 iPhone 16e is many things, but don't you dare call it a budget phone. I hesitate to even call it "cheap." As a successor to the $429 iPhone SE, it's hard not to see the 16e as a disappointment. Sure, it's $200 less than the vanilla iPhone 16 (which I argued was a great deal at launch), and the 16e also packs in the latest A18 chip with support for Apple Intelligence. But it's no longer a small phone, and it pushes Apple's cheaper iPhone option well beyond $500. That's something we'll likely never see again. (And it's potentially terrible news for future iPhone pricing, as well.)

Given the sheer amount of new hardware in the iPhone 16e — including a larger 6.1-inch OLED screen, Apple's first in-house "C1" modem and that aforementioned A18 chip — it's easy to make excuses for the price. The 16e is certainly far closer in specs to the iPhone 16 than the third-gen SE was to the iPhone 13. But I'd argue that Apple didn't exactly need an OLED screen for this model, and there are likely other ways to cut down costs. (It's even stranger Apple kept out MagSafe and fast wireless charging, which would have been cheaper to implement, and arguably more useful, than a large OLED display.)

Apple

And while it's nice to have the A18 chip (albeit with one less GPU core) and full Apple Intelligence support, I agree with my colleague Igor Bonifacic that users aren't exactly clamoring for those AI features. If we had to blame one culprit for the iPhone 16e's pricing, though, it's likely Apple Intelligence. After all, Apple is still fighting to prove it isn't too far behind Microsoft, Google and OpenAI. In any other year, Apple might have been able to justify throwing an older chip in the 16e, but that's not possible when it's in the middle of an AI hype war.

Mostly, I'm just sad that Apple is once again raising the price of admission to its walled garden without much justification. There's something special — noble, even — about sub-$500 smartphones. They're a reminder of a saner era of smartphones, when prices were being driven down by phones like the Moto G. These days you're left with Android phones like the Pixel 8a (and potentially the upcoming Pixel 9a), as well as the $400 Samsung Galaxy A35 and $499 Galaxy A55.

Apple

Now that the dream of a sub-$500 iPhone is well and truly dead, it feels like Apple is just setting the stage for future price jumps. A $600 or $650 iPhone 17e will certainly look like a deal compared to a $850 or $900 iPhone 17. And just wait for the inevitable $2,000 iPhone foldable, which could potentially be specced beyond $3,000. 

Of course, you could be a smart Apple shopper and opt for used or refurbished iPhones. I recently picked up a refurbished iPhone 14 Plus as an early Mothers' Day gift for $420, and Amazon currently has listings for iPhone 14 Pros right under $500. Those devices won't support Apple Intelligence, but I'd argue sticking to the used market is simply a more useful form of intelligence. 

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