Apple has announced the iPhone 16e, a lower-cost addition to its smartphone lineup, as the company looks to reinvigorate sales of its flagship product.

The iPhone 16e retains many features of the premium iPhone 16 models, including Apple’s latest artificial intelligence (AI) capabilities and integration with OpenAI’s ChatGPT.

“The iPhone 16e packs in the features our users love about the iPhone 16 lineup, including breakthrough battery life, fast performance powered by the latest-generation A18 chip, an innovative 2-in-1 camera system, and Apple Intelligence,” said Kaiann Drance, Apple’s Vice President of Worldwide iPhone Product Marketing.

Priced at $599 in the United States—$200 less than the standard iPhone 16—the iPhone 16e will be available starting February 28.

The model appears to follow in the footsteps of the iPhone SE series, last released in 2022, which targeted cost-conscious buyers.

Apple Unveils Budget-Friendly iPhone 16e with AI Features

Notably, the iPhone 16e will debut Apple’s first in-house C1 modem for wireless connectivity, moving away from reliance on Qualcomm.

The launch comes as Apple faces slowing iPhone sales, particularly in China, where rivals like Huawei and Xiaomi are gaining ground.

Despite reporting $124.3 billion in revenue for the holiday quarter, Apple’s overall sales growth fell short of market expectations. The company is betting on AI-powered iPhones to attract consumers and maintain its market dominance.

Apple joins other tech giants—Google, Microsoft, and Amazon—in pushing generative AI as the future of computing. Its biggest competitor, Samsung, recently launched the Galaxy S25 series with advanced AI features, intensifying the battle for smartphone supremacy.