Apple unveils iPhone 16e — a new, lower-cost addition to its iPhone 16 lineup. Here are details.

Apple on Wednesday debuted its iPhone 16e, a lower-cost addition to the tech giant’s iPhone 16 lineup that features Apple Intelligence tools. 

The iPhone 16e replaces the iPhone SE, last released in 2022, which was Apple’s budget-friendly iPhone option. At $599, the starting price for the iPhone 16e is less than the $800 it costs for a standard iPhone 16, but more than the SE, which sold for $430.

The new phone is powered by Apple’s own cellular modem chip, called the C1, which processes the phone’s AI features. The tools can summarize text and audio, create new emojis and has made Apple’s virtual assistant, Siri, more capable. Apple also touted the new phone’s more powerful battery and camera, compared with the now discontinued SE. 

Pre-ordering begins Friday for the iPhone 16e, which will be available in stores Feb. 28.

“We’re so excited for iPhone 16e to complete the lineup as a powerful, more affordable option to bring the iPhone experience to even more people,” Apple Vice President Kaiann Drance said in a statement. 

Apple began hyping its foray into AI since last June, and has rolled out new features piecemeal. The complete set of high tech capabilities has not yet been fully released in the U.S, and the technology isn’t even available in some parts in the world. 

Apple has been losing ground in China, one of the places where iPhone’s AI technology is not yet available. It’s unclear when it will be released in there.  

In addition to being outfitted with AI capabilities, the iPhone 16e has a 16.1-inch display screen, and no longer has the home screen button familiar to SE owners. The new iPhone 16e will include a facial recognition option for unlocking the device.

Apple shares edged up to nearly $245 as of Wednesday afternoon, below the stock’s peak price of roughly $260 reached in late December.