Apple announced its new $599 iPhone 16e with Apple C1, the company’s first in-built cellular modem chip.
The C1 is Apple’s first foray into cellular modems. Apple’s launch of the modem culminates years of research, multiple launch delays, and more than $1bn in acquisitions. The proprietary sub-6 GHz 5G modem will reduce Apple’s reliance on Qualcomm and integrate cellular connectivity within its larger device ecosystem.
Apple’s move will lead to improved device performance, design innovations, and cost savings from minimal intellectual property (IP) fees to Qualcomm.
The relatively cheaper iPhone 16e – which seems to replace the iPhone SE 3rd gen that sells in lower volumes than its flagship brethren, will allow Apple to test the performance of its C1 modem at scale before incorporating it into its more premium iPhones.
This move will enable Apple to gather extensive data and user feedback, ensuring that any potential issues are addressed before a wider rollout.
Tough modem competition
However, Qualcomm’s latest modems are the epitome of advanced engineering and have been used and battle-tested extensively by telcos globally, establishing their consistency and performance.
Apple has a long road ahead to match that. In the interim, Apple’s in-house modem technology is anticipated to expand beyond smartphones, to Apple watches, iPads, and MacBooks.
iPhone 16e – a tempting package
The iPhone 16e – following the flagship naming precedent set by Samsung’s Galaxy FE and Google’s Pixel ‘a’ mid-range line-ups – is not merely a successor to the iPhone SE. It is a new addition to the iPhone 16 lineup, sharing core features with its siblings while introducing enhancements.
It includes the latest gen A18 chip, Apple Intelligence, strong battery life, Fusion camera, the Action button and USB-C. It also has newer and more advanced features than any iPhone SE, including a full-screen design with a larger and brighter OLED display, Face ID, up to 12 more hours of battery life in a day, durable design with Ceramic Shield, a two-in-one camera system, and free satellite messaging for two years.
Global launch – but is the price right?
The phone will be launched globally. Preorders for the phone will start on February 21, 2025, and the phone will be available on February 28.
With a price point that is $200 less than the base iPhone 16 but $179 more than the iPhone SE, the iPhone 16e aims to attract consumers seeking premium features without the flagship price tag.
As seen by the comparison provided by Apple, the company is targeting consumers with legacy phones such as the iPhone 11 and 12, the 12 mini, the iPhone SE 2nd and 3rd gen. The iPhone 16e also includes access to Apple Intelligence.
Despite current issues plaguing Apple Intelligence, the company is lowering the barrier to entry for its AI services, which is crucial for competing with the likes of Google and OpenAI.
