IPhone 16e: Is Apple’s “Budget” iPhone Really Worth It in 2025?

The brand-new 2025 iPhone 16e is here, but it’s not the budget phone we once expected. In previous years, the iPhone SE was known for its budget-friendly price point, offering an affordable entry into the iPhone ecosystem. However, the 16e marks a shift in that narrative. Starting at $599, it’s no longer a budget device. Because Apple takes high price for storage upgrade, the phone I’m using for testing is almost $900. While it is still the cheapest new iPhone available, it no longer carries the same “cheap” label, making it harder to recommend.

In the past, the iPhone SE was the go-to option for those seeking an affordable iPhone experience. It was perfect for parents, children, or anyone upgrading from an old phone. The simplicity of an older body paired with newer internals, all at a reasonable price—typically around $399 or $429 made it an easy choice. But now, at $599, this new model no longer fits that mold, and I’m left wondering who it’s really for. After a week of using the iPhone 16e, I’m still not sure.

The Parts Bin Strategy:

One of the secrets to making the iPhone SE affordable in previous years was Apple’s use of the “parts bin” strategy. Essentially, Apple took components from older models, mixed them with newer technology, and created a budget-friendly iPhone. This formula is back with the iPhone 16e, and its design draws heavily from the iPhone 14. The aluminum build, flat sides, USB Type-C, and IP68 water resistance are all familiar, but there are new elements too, such as a new single-camera ring on the back and the addition of the Action Button on the left side.

The front of the iPhone 16e features the same 6.1-inch display with a notch and Face ID, making it feel like a modernized version of the SE. While the display is fine, it’s not the brightest, and it struggles a bit in direct sunlight. Moreover, it still operates at a 60Hz refresh rate, which feels outdated in 2025, especially given the higher refresh rates on other smartphones.

Price vs. Features:

Apple has made a full lineup of iPhones for 2025. The iPhone 16e is the budget model, and it comes with the 16s and 16 Pro versions. To keep the 16e affordable, Apple had to make some compromises. Some of these cuts are understandable, but others are harder to accept.

Let’s talk about the new chip. The 16e features the A18 chip, which is the same as the one in the flagship iPhone 16, but there’s one important difference: this version has one fewer GPU core. While this may seem like a minor cut, it’s a typical example of chip binning something Apple often does to produce different versions of its chips for various devices. The lack of the additional GPU core may only become noticeable during intensive gaming, so for most everyday users, this won’t be a significant issue. Overall, this is still one of the most powerful phones in its price range.

However, the design is a bit more understated. The iPhone 16e comes in only two colors: matte black and matte white. The design is clean but fairly plain, with no logos or text on the back, and a small, subtle camera bump. If you want more color options, you’ll need to get a case or skin.

Another major cut is the absence of MagSafe, which feels particularly frustrating. MagSafe has become a staple of the iPhone experience, but the 16e doesn’t have it. Instead, it only supports slow, first-gen Qi wireless charging that maxes out at 7.5 watts. Because there are no magnets, it’s hard to place it properly. In my experience, if it’s not aligned perfectly, the charging becomes very slow. You can add a case with MagSafe compatibility if you want, but it’s disappointing that it’s not built into the phone itself.

The Camera:

The iPhone 16e has only one camera on the back. It may look like a downgrade compared to the dual or triple cameras in expensive models, but this design is part of Apple’s “good, better, best” iPhone setup. However, this camera isn’t the same as the one in the iPhone 16 or 16 Pro. It’s a 48MP sensor, but the sensor itself is smaller and has inferior stabilization, leading to a different photography experience.

The 16e’s camera delivers decent results in daylight, with sharp images and typical iPhone color saturation, but it struggles in low light. The smaller sensor doesn’t gather as much light, resulting in softer images and more reliance on night mode. The lack of a second lens also means there’s no cinematic mode, spatial video, or macro photography. For users who care deeply about photography, the 16e falls behind its more expensive counterparts, but for most casual users, it’s fine.

Missing Features:

The iPhone 16e lacks a few features that are becoming standard in the iPhone lineup, such as Wi-Fi 6E and Wi-Fi 7 support, and ultrawide band for precision finding with AirTags. It also doesn’t include the camera controls via the Action Button, though most people likely won’t miss that.

One interesting new thing is that Apple has added its first self-made cellular modem, called the C1. A few years back, Apple bought a part of Intel’s modem business, and now this is the first iPhone to use the C1 modem instead of the Qualcomm one. The C1 modem supports 4G, 5G, GPS, and satellite signals. In my testing, I didn’t see any big improvement, but that’s actually good because it shows it’s working well and reliably. Even though it doesn’t support millimeter-wave 5G, this is still a big step for Apple in making its own parts.

Battery Life and Efficiency:

The iPhone 16e benefits from the new C1 modem, which is designed to be more efficient. This modem helps improve battery life, especially in areas with weaker cellular signals. This is a huge benefit since past SE models, while packing a powerful processor, struggled with battery life due to their smaller form factors. The 16e, however, has a larger battery and the new modem, meaning it delivers excellent battery performance, on par with the iPhone 16 Pro.

Conclusion:

In the end, the iPhone 16e feels like it’s been designed to push users up to the iPhone 16 or 16 Pro. At $599, it’s tempting as the entry-level iPhone, but once you factor in its limitations such as the lack of MagSafe, slower wireless charging, and a single camera it starts to feel less appealing. Apple made this phone to attract people towards their pricing lineup, but the features of the 16e don’t fully match its price.

For $600, you could also pick up a refurbished iPhone 15 Pro, which offers a better display, triple cameras, and a more premium experience overall. If you’re considering the iPhone 16e, I’d recommend starting with the iPhone 15 Pro instead. The 16e may make sense for those upgrading from much older iPhones, but for anyone else, the higher-priced models offer better value for money.

In conclusion, while the iPhone 16e isn’t a bad phone, its price tag is what holds it back. For those who already own an iPhone 12 or older, this could be a fine upgrade, but for others, it’s hard to justify the purchase when the alternatives are so much better.