Apple expands IPhone lineup with $599 17e amid AI competition

Apple has introduced a lower-priced version of its flagship smartphone, the iPhone 17e, in a move aimed at expanding its lineup and driving iPhone adoption amid growing competition in artificial intelligence.

The new model, starting at $599, features the same processor as the standard iPhone 17 but comes with a slightly smaller screen, a single camera instead of two, and omits the Dynamic Island bar for app notifications. 

The device will be available beginning March 11 in black, white, and pink, and offers more storage than its predecessor, the iPhone 16e.

Apple’s release of the iPhone 17e marks a departure from the sporadic schedule of its budget SE line, reflecting what appears to be rising consumer demand for more affordable options. 

The iPhone 16e, released last year, was reportedly popular following the lukewarm reception of the iPhone Air.

“The demand for iPhone was simply staggering,” Apple CEO Tim Cook said during the company’s fourth-quarter earnings call in January. 

Strong iPhone sales helped Apple surpass revenue expectations in Q4 2025, fueled by record upgrades and double-digit growth from users switching from Android devices.

The iPhone 17e, priced $200 less than the iPhone 17, could also help accelerate adoption of Apple Intelligence by appealing to users with older phones that don’t support Apple’s AI features.

However, the launch comes amid broader challenges in the smartphone industry, as manufacturers contend with a global memory shortage worsened by AI-related demand. 

Industry analysts at the International Data Corporation estimate that the smartphone market will decline 6.8% in Q1 2026.

The iPhone 17e launch kicks off what is expected to be a busy year for Apple, including a revamped version of Siri powered by Google’s Gemini AI model and Apple’s anticipated first foldable iPhone.

In addition to the iPhone 17e, Apple announced an updated iPad Air on Monday, signaling the start of a major year of product launches.