Apple Unveils Lower-Priced iPhone 17e to Lift Sales
Apple has launched a cheaper version of its latest smartphone, the iPhone 17e, as the company looks to sustain strong iPhone sales amid investor concerns about its pace in artificial intelligence.
Announced on Monday, the new device will retail from $599 and go on sale on March 11. It expands Apple’s iPhone 17 lineup and sits $200 below the standard iPhone 17, offering a more affordable option for consumers.
The iPhone 17e runs on the same processor as the flagship model but comes with several scaled-back features. It has a slightly smaller display, a single rear camera instead of a dual-lens system, and does not include Apple’s Dynamic Island interface for app notifications.
Apple has traditionally updated its lower-cost phones irregularly, most notably through its now-discontinued SE range. However, the launch follows last year’s release of the iPhone 16e, signalling a shift toward more frequent updates in the budget segment. Analysts say the move suggests growing demand for cheaper iPhones, particularly after the muted response to the iPhone Air.
Strong iPhone sales have also helped reassure Wall Street about Apple’s broader strategy. The company exceeded revenue expectations in the final quarter of 2025, driven largely by demand for the iPhone 17 range. Apple reported record upgrade rates and double-digit growth among users switching from Android devices.
“The demand for iPhone was simply staggering,” Apple chief executive Tim Cook said during the company’s January earnings call.
By targeting users with older devices, the iPhone 17e could also accelerate adoption of Apple Intelligence, the firm’s suite of AI features that require newer hardware.
The launch comes as the global smartphone market faces headwinds. Research firm International Data Corporation has forecast a 6.8% decline in worldwide smartphone shipments in the first quarter of the year, citing a memory chip shortage linked to AI demand.
The iPhone 17e is available in black, white and pink, offers increased storage compared with its predecessor, and features a new cellular modem that Apple says is twice as fast as the one used in the iPhone 16e.
Apple also used Monday’s announcement to unveil an updated version of the iPad Air, marking the start of what is expected to be a busy year of product launches for the company.
