Mar 03, 2026
3 min read
Apple on Monday announced a cheaper version of the iPhone 17, expanding its smartphone lineup as it builds on its blockbuster product to allay concerns that the company is lagging behind in artificial intelligence.
Apple on Monday announced a cheaper version of the iPhone 17, expanding its smartphone lineup as it leans on blockbuster products to address concerns that the company is falling short on ingenuity.
The iPhone 17e, which starts at $599, is a scaled-down version of the more expensive iPhone 17. The phone has the same processor but a slightly smaller screen.It also has one camera instead of two and lacks the Dynamic Island panel that displays app information.The device will launch on March 11.
Apple doesn't usually release new versions of cheaper phones every year like more expensive iPhones.But this follows the introduction of the iPhone 16e last year, departing from the sporadic release of the previous budget smartphone, the SE line.The new phone is probably an indication that it is seeing an increase in demand for cheaper phones, and that the iPhone 16e is popular with consumers after receiving the iPhone Air.
iPhone sales also played an important role in allaying Wall Street's concerns about where the company stands in the AI race.The tech giant beat revenue expectations in the fourth quarter of 2025, largely driven by the success of the iPhone 17. Last year, Apple saw record iPhone upgrades and double-digit growth in "switchers," or users switching from Android to iPhone.
“The demand for iPhone has been just staggering,” Apple Chief Executive Tim Cook said during the company’s January earnings call.
The iPhone 17e, which costs $200 less than the iPhone 17, could also help adopt Apple's intelligence by attracting users with older phones that don't support Apple's AI features.
But the launch also comes at a difficult time for the smartphone industry in general as device manufacturers grapple with AI-driven memory shortages.International Data Corporation estimates that the global smartphone market will decrease by 6.8% in the first quarter of this year.
The iPhone 17e kicks off what is expected to be a big launch year for Apple.The company's improved version of Siri, powered by Google's Gemini AI model, is expected to arrive later this year after a delay.According to Bloomberg, Apple's first iPhone could arrive this year.
The iPhone 17e will be available in black, white and pink and will include more storage space.It will also include Apple's new cellular modem, which is said to be twice as fast as the iPhone 16e.
The company also announced a new version of the iPad Air on Monday.
