Apple (AAPL, Financials) is set to expand its iPhone 16 lineup to five models, adding a new budget-friendly option, the iPhone 16e. The new model is scheduled for release on Feb. 28, 2025.

Starting at $599 for the basic 128GB model, the iPhone 16e offers greater storage options at $699 for 256GB and $899 for 512GB. The basic iPhone 16 starts at $799; the iPhone 16 Plus starts at $899. Priced at $999 and $1,199 respectively, the higher-end iPhone 16 Pro and iPhone 16 Pro Max have the most costly Pro Max configuration reaching $1,599 for 1TB of storage.

Positioned as the most reasonably priced variant, the Apple 16e has a 6.1-inch display, an aluminum frame, and a 48MP back camera matched with a 12MP front camera. It incorporates Apple's in-house C1 modem and operates on its A18 processor. Though it has a comparable display size, the normal iPhone 16 has a twin-camera configuration and a greater quality. Though having a bigger screen, the 6.7-inch iPhone 16 Plus has the same specs as the regular iPhone 16.

Apple's A18 Pro processor and titanium frames abound on the premium iPhone 16 Pro and iPhone 16 Pro Max versions; the Pro Max has the biggest iPhone screen to date at 6.9 inches. Both versions include a 12MP ultra-wide lens, a triple-camera system with a 48MP main lens, and a second 48MP telephoto lens.

With 23% of sales, Apple's fourth quarter of 2024 sales data shows that the iPhone 16 Pro Max was the most often used model; followed by the basic iPhone 16 at 21%. The Pro model accounted for 16%; the iPhone 16 Plus took up 8%. Demand for older modelsincluding the iPhone 14kept growing, which helped to account for 16% of sales.

Apple's most recent artificial intelligence technologies are also included into the iPhone 16 series, thus enhancing privacy controls, task simplification, and personalizing ability. Natural language processing, picture generating, and context-aware app activities are among AI-driven capabilities.

Apple's enlarged product line seeks to satisfy both budget-conscious and luxury consumers by providing a wider spectrum of price points and technical innovations.