On Monday, Apple unveiled a less expensive iteration of the iPhone 17, expanding its mobile device portfolio. This move seems designed to counteract worries about the company lagging in the artificial intelligence arena by leaning on its bestseller.
The iPhone 17e, priced from $599, represents a streamlined variation of the pricier iPhone 17. It utilizes the identical processor but features a slightly smaller display. Furthermore, it’s equipped with just a single rear camera instead of two, and it omits the Dynamic Island notification area found on the premium model. This device is slated for release on March 11th.
Typically, Apple avoids releasing refreshed versions of its budget-friendly handsets annually, as this can cannibalize sales of their more expensive iPhones. However, this follows the introduction of the iPhone 16e last year, marking a departure from the infrequent updates previously seen with the budget SE line. The debut of this new phone potentially signals rising consumer appetite for more affordable options, especially given the lukewarm reception of the iPhone Air compared to the popularity achieved by the iPhone 16e.
iPhone sales have also been pivotal in easing Wall Street’s concerns regarding Apple’s standing in the burgeoning AI race. The tech giant surpassed revenue forecasts for the fourth quarter of 2025, substantially driven by the success of the iPhone 17. Last year, Apple witnessed a record number of iPhone upgrades alongside double-digit growth in “switchers”—users migrating from the Android ecosystem to iPhone.
“The demand for iPhone has simply been extraordinary,” stated Apple CEO Tim Cook during the company’s January earnings call.
The iPhone 17e, positioned $200 below the standard iPhone 17, could furthermore aid the broader adoption of Apple Intelligence by drawing in users currently on older handsets that don’t support Apple’s new AI capabilities.
Nevertheless, this launch arrives amidst challenging circumstances for the wider smartphone sector, as device makers contend with ongoing memory shortages attributed to AI demands. International Data Corporation projects a global decline of 6.8% for the smartphone market in the first quarter of this year.
The iPhone 17e kicks off what is anticipated to be a significant product launch year for Apple. The company’s revamped Siri, expected to incorporate Google’s Gemini AI and slated for arrival later this year following prior delays, is highly anticipated. Moreover, Apple’s first foldable iPhone might see its introduction this year, according to reports from Bloomberg.
The iPhone 17e will be offered in Black, White, and Pink color configurations, and it boasts enhanced storage capacity compared to its predecessor. It also incorporates Apple’s new in-house cellular modem, which the company claims offers twice the speed of the modem found in the iPhone 16e.
Separately, the company also announced an updated iPad Air model on Monday.
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