Apple's new iPhone 16e | Photo from Apple

Almost six months after launching the iPhone 16, Apple Inc. has finally revealed the iPhone 16e, the cheapest member of the lineup late Wednesday. 

The iPhone 16e, which is powered by the same A18 chip, is Apple's first device to use its in-house modem chip, the C1, allowing it to connect to 5G.

Apple has been using Qualcomm's chip as the cellular modem on many iPhone models for years.

The newest member of the iPhone 16 lineup also marks the first time that Apple has dropped the SE branding for its budget-range phone. SE is recognized by fans as the brand to look for when it comes to budget-friendly iPhone devices.

The most recent iPhone SE release was in 2022, and it shares the same design language as the second generation.

While Apple did not explain the sudden shift from SE to just e, one notable difference in the iPhone 16e is the addition of Apple Intelligence.

The iPhone 16e starts at $599 in the United States, compared with $799 for a standard iPhone, and will be available starting February 28, according to Apple.

"The iPhone 16e joins the iPhone 16 family as its most affordable member, and it has Apple Intelligence, our powerful intelligence system," said CEO Tim Cook in an online launch, bringing the AI technology to more people.

Just a tap: Apple introduces Camera Control into AI-enhanced iPhone 16 

The iPhone 16e also features the customizable action button introduced in the iPhone 16, but without the camera control.

Looking at the front, the newest iPhone has a 6.1-inch Super Retina XDR OLED display with a 12-megapixel camera at the notch.

Meanwhile, a 48-megapixel single camera is visible on the back, which Apple said takes photos and videos "like having two cameras in one."

With the A18 chip, the iPhone 16e is guaranteed to have a long battery life and can be charged both wirelessly and through its Type-C port.

Apple said pre-orders for the iPhone 16e will begin on Friday, February 21, and it will be available in colors black and white with elegant matte finishes.

There is no official release date in the Philippines yet, but Apple has already announced the prices, which begin at P39,990 for the 128GB variant.

The more affordable iPhone debuts as Apple works to fuel sales in the face of intense competition, particularly in China.

Apple reported a whopping $124.3 billion in revenue in the year-end holiday quarter, but sales growth fell shy of market expectations.

Revenue growth was powered by Apple's services and digital content unit, with iPhone sales slipping in markets like mainland China.

The company hopes that customers will be attracted to new iPhone models infused with Apple Intelligence AI powers.

Along with Apple, other tech giants like Google, Microsoft and Amazon are convinced that generative AI's powers are the next chapter of computing and are boosting spending to avoid being left behind.

Apple rival Samsung earlier this month made its new Galaxy S25 series, packed with AI capabilities, available worldwide.

-- With a report from Agence France-Presse