SAN FRANCISCO, United States (AFP) — Apple on Wednesday introduced a new iPhone 16e model with a lower price tag as the company seeks to revive sales of its iconic device.

Apple touted the iPhone 16e as having many features found in more expensive models, including Apple-tailored artificial intelligence (AI) features and integration with OpenAI’s ChatGPT.

“iPhone 16e packs in the features our users love about the iPhone 16 lineup, including breakthrough battery life, fast performance powered by the latest-generation A18 chip, an innovative 2-in-1 camera system, and apple intelligence,” Apple Vice President of Worldwide iPhone Product Marketing Kaiann Drance said in a release.

The iPhone 16e starts at US$599 in the United States, compared with US$799 for a standard iPhone, and will be available starting February 28, according to Apple.

The name is clearly a nod to Apple’s iPhone SE series, which were released until 2022, and similarly targeted to lower-paying customers.

Along with a custom-made computer chip, the iPhone 16e will be the first in the line to use Apple’s own C1 modem for wireless connectivity.

Apple has long relied on California-based Qualcomm for iPhone modems.

The more affordable iPhone debuts as Apple works to fuel sales in the face of intense competition, particularly in China.

Apple reported a whopping US$124.3 billion in revenue in the year-end holiday quarter, but sales growth fell shy of market expectations.

Revenue growth was powered by Apple’s services and digital content unit, with iPhone sales slipping in markets like mainland China.

The company hopes that customers will be attracted to new iPhone models infused with Apple Intelligence AI powers.

Along with Apple, other tech giants like Google, Microsoft and Amazon are convinced that generative AI’s powers are the next chapter of computing and are boosting spending to avoid being left behind.

Apple rival Samsung earlier this month made its new Galaxy S25 series, packed with AI capabilities, available worldwide.