Apple introduced Monday a lower-priced model of the iPhone 17, increasing its smartphone lineup because it depends on its blockbuster product to stave off considerations the corporate is falling behind in synthetic intelligence.
The iPhone 17e, which begins at $599, is a pared-back model of the pricier iPhone 17. The telephone has the identical processor however a barely smaller display. It additionally has one digital camera as an alternative of two and lacks the Dynamic Island bar for displaying data from apps. The machine launches March 11.
Apple doesn’t usually launch new variations of its cheaper telephones yearly because it does its pricier iPhones. But this follows the introduction of the iPhone 16e final yr, a departure from the sporadic releases of its earlier funds smartphone, the SE line. The new telephone is probably a sign that it’s seeing elevated demand for cheaper telephones, and that iPhone 16e was common with shoppers following a muted reception of the iPhone Air.
Sales of the iPhone have additionally been instrumental in quelling Wall Street’s considerations about the place the corporate stands in the AI race. The tech large blew previous income expectations in the fourth quarter of 2025, largely driven by the iPhone 17’s success. Apple noticed report iPhone upgrades final yr and double-digit development on “switchers,” or customers that switched from Android to the iPhone.
“The demand for iPhone was simply staggering,” Apple CEO Tim Cook stated on the corporate’s earnings name in January.
The iPhone 17e, which prices $200 lower than the iPhone 17, may additionally assist boost adoption of Apple Intelligence by interesting to customers with older telephones that don’t help Apple’s AI options.
But the launch additionally comes at a difficult time for the broader smartphone business as machine makers grapple with the ongoing memory shortage pushed by AI. The International Data Corporation estimates the worldwide smartphone market will decline 6.8% in the primary quarter of this yr.
The iPhone 17e kicks off what is predicted to be a major yr of product launches for Apple. The firm’s revamped model of Siri, which will probably be powered by Google’s Gemini AI model and is predicted to arrive later this yr after delays. Apple’s first foldable iPhone may additionally arrive this yr, according to Bloomberg.
The iPhone 17e will probably be obtainable in black, white and pink, and contains extra cupboard space than its predecessor. It additionally features a new model of Apple’s mobile modem, which it says is twice as quick because the one in the iPhone 16e.
The firm additionally introduced Monday a brand new model of the iPad Air.