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Apple has consistently explored the market for more affordable versions of its flagship iPhones, a journey that began with a groundbreaking shift in design and materials. This strategy has evolved over time, balancing cost-effectiveness with performance and features, creating a dedicated "budget" segment for consumers.
The narrative of the budget iPhone officially began with the iPhone 5c, a colorful departure from Apple's signature metal and glass aesthetic. Launched alongside the iPhone 5s, the 5c was positioned as a more accessible option, priced approximately $50 to $100 less. While its vibrant, unibody plastic shell was a stark contrast to the elegant aluminum of the 5s, the most significant difference was internal. The 5c was equipped with the previous-generation Apple A6 chipset, while the 5s boasted the more advanced, 64-bit A7 chip and the innovative Touch ID fingerprint sensor. For the most part, however, other core features like the 4-inch Retina display and the 8-megapixel camera remained quite similar.
Following this, Apple took a new approach in 2016 with the first-generation iPhone SE. This model was a remarkable blend of old and new. It resurrected the beloved, compact design of the iPhone 5s, but packed a powerful punch with internal components from the much newer iPhone 6s. This meant the SE came with the lightning-fast A9 chipset and a high-quality 12-megapixel camera capable of shooting 4K video. It was a perfect storm for consumers who wanted flagship-level performance in a small, nostalgic form factor, and its competitive price made it a huge success.
The strategy of using a tried-and-true design with modern internals was cemented with the launch of the iPhone SE (2nd generation) in 2020. This time, Apple adopted the design of the classic iPhone 7 and iPhone 8, featuring a 4.7-inch Retina HD display and the iconic Home button with Touch ID. Despite its familiar look, it was powered by the same A13 Bionic chip found in the then-current iPhone 11 flagship lineup. This made it a performance beast for its size and price. The starting price of $399 was particularly compelling when compared to the $699 price tag of the iPhone 11, offering a significant saving for those who didn't require the latest features like Face ID or multiple rear cameras.
In 2022, Apple refreshed this model again with the iPhone SE (3rd generation). The exterior remained unchanged, clinging to the iPhone 7-era design. However, it received a substantial internal upgrade to the A15 Bionic chip, the same powerhouse used in the iPhone 13 series. This upgrade provided incredible speed, power efficiency, and, for the first time in a budget iPhone, 5G cellular connectivity. While some critics pointed to its aging design and smaller display, its price of $430 still made it an appealing entry point for many users into the Apple ecosystem.
In a surprising move in February 2025, Apple rebranded its budget segment with the introduction of the iPhone 16e. This model adopted the full-screen design of the iPhone X, a significant step up from the SE's home-button layout. The 16e is equipped with the same A18 chip as the flagship iPhone 16, ensuring top-tier performance. However, with a starting price of $599 compared to the iPhone 16's $799, the price gap has shrunk considerably. This shift has led to some debate among consumers: is a $200 saving enough to justify an older design?
Looking ahead, industry insiders are already speculating about the iPhone 17e. Rumors suggest it could be based on the iPhone 11's design and feature the new A19 chip. This indicates that Apple may continue to recycle previous flagship designs for its budget offerings, allowing them to provide modern performance at a more accessible price point, even if that price continues to creep upwards. The ultimate question for consumers remains whether they value a lower price enough to forgo the latest innovations and designs.