Apple announced Monday a lower-priced version of the iPhone 17, expanding its smartphone lineup as it relies on its blockbuster product to stave off concerns the company is falling behind in artificial intelligence.
The iPhone 17e, which starts at $599, is a pared-back version of the pricier iPhone 17. The phone has the same processor but a slightly smaller screen. It also has one camera instead of two and lacks the Dynamic Island bar for showing information from apps. The device launches March 11.
Apple doesn’t typically release new versions of its cheaper phones every year as it does its pricier iPhones. But this follows the introduction of the iPhone 16e last year, a departure from the sporadic releases of its previous budget smartphone, the SE line. The new phone is perhaps an indication that it’s seeing increased demand for cheaper phones, and that iPhone 16e was popular with consumers following a muted reception of the iPhone Air.
Sales of the iPhone have also been instrumental in quelling Wall Street’s concerns about where the company stands in the AI race. The tech giant blew past revenue expectations in the fourth quarter of 2025, largely driven by the iPhone 17’s success. Apple saw record iPhone upgrades last year and double-digit growth on “switchers,” or users that switched from Android to the iPhone.
“The demand for iPhone was simply staggering,” Apple CEO Tim Cook said on the company’s earnings call in January.
The iPhone 17e, which costs $200 less than the iPhone 17, could also help boost adoption of Apple Intelligence by appealing to users with older phones that don’t support Apple’s AI features.
But the launch also comes at a challenging time for the broader smartphone industry as device makers grapple with the ongoing memory shortage driven by AI. The International Data Corporation estimates the global smartphone market will decline 6.8% in the first quarter of this year.
The iPhone 17e kicks off what is expected to be a significant year of product launches for Apple. The company’s revamped version of Siri, which will be powered by Google’s Gemini AI model and is expected to arrive later this year after delays. Apple’s first foldable iPhone could also arrive this year, according to Bloomberg.
The iPhone 17e will be available in black, white and pink, and includes more storage space than its predecessor. It also includes a new version of Apple’s cellular modem, which it says is twice as fast as the one in the iPhone 16e.
The company also announced Monday a new version of the iPad Air.
CNN
