The iPhone 17e may be Apple’s last chance to save the budget phone

It’s been a mixed year for the iPhone. Overall, the biggest jewel in Apple’s product crown remains an industry-shaping juggernaut ($49 billion in revenue in the fourth quarter alone, up 6% from a year earlier), but for a variety of reasons and in a variety of ways, some models have failed to perform well in 2025.

Five iPhones were released this year, and we can divide this group into three hits and two misses. The iPhone 17 received rave reviews for its improvements over the 16 and outperformed, while the two Pro models apparently sold like hotcakes. But the controversial iPhone Air proved to be a commercial disappointment, and the less said about the iPhone 16e, the better.

Of the two phones in trouble, the 16th is more concerning. The Air’s apparent low sales are offset by the more expensive Pro models, which in some ways is perfectly fine. The Air doesn’t really need to be a big seller to do its job. It made headlines, drew people to the Apple Store, and still has value as a test bed for the technological developments needed for a foldable iPhone. While the iPhone 16e is currently Apple’s only entry point into the large and lucrative budget market, and is not a test bed for anything other than customers’ willingness to compromise on basic features.

With all of this in mind, 2026 is shaping up to be a big year for the iPhone. The iPhone Fold is expected to arrive in the fall, but the launch of the iPhone 17e in the spring could be even more significant. This will give Apple a chance – perhaps its last chance – to demonstrate real value to budget phone buyers before they ditch their old trusty 2nd generation iPhone SEs, buy a Pixel 9a or Galaxy A17 5G, and leave the iOS ecosystem forever.

The problem with the iPhone 16e is that it takes too much and gives too little. It can barely be classified as a budget product, coming in at $599 compared to $429 for the iPhone SE 3. Yet feature-wise, it falls short in far too many areas to justify this mid-tier price. To convince budget buyers, Apple needs to lower the price or increase the features.

It seems that the second approach is more likely. Last week, a report suggested that one of the 16th’s most annoying compromises, the lack of MagSafe, could be fixed on the next generation; Experts believe this could be a response to Google adding Qi2 support to the Pixel 10 and making the 16th’s value proposition even more threadbare. With the Pixel 10a due to launch shortly after the 17th, at a lower price and with the company’s own brand of magnetic wireless charging, the comparison would be particularly awkward.

MagSafe could therefore be added to the list. Is this enough to make things happen? I doubt it. But I hope Apple doesn’t stop there.

Part of the problem with the 16e’s unbalanced spec sheet was Apple’s desire to make it AI-ready, which required the inclusion of a high-end processor and lots of RAM; to keep the price low(ish), compromises had to be made in other areas. But once this obstacle is overcome, the 17th can be a little more balanced. The RAM may stay the same and maybe we could get a second rear camera lens. Or a dynamic island. Or, who knows, a few more color options.

Do I think the iPhone 17e will be a real budget option? No. Do I think this will be a well-equipped mid-ranger? Maybe. But in a year that’s bound to be dominated by a very, very expensive iPhone, let’s hope Apple remembers the importance of value.

Foundry

Welcome to our weekly Apple Breakfast column, which includes all the Apple news you missed last week in one handy summary. We call it Apple Breakfast because we think it pairs really well with a Monday morning cup of coffee or tea, but it’s cool if you also want to read it during lunch or dinner hours.

Give your opinion: in defense of Siri

A very interesting email came to me following last week’s talk about Siri. Garry, a self-proclaimed “Apple freak,” made an important point: It’s difficult for a company to understand and predict user behavior while respecting their privacy.

“The most ‘smart’ voice assistant is the one that has the most information about the user,” he writes. “So, naturally, Google is currently ahead in the ‘smart’ race, because the reason for every Google app to exist is to collect as much user data as possible. So… if Apple is sticking to its goal of not invading a user’s privacy, it has a big problem making Siri ‘smarter,’ right?”

“Personally, given the choice between privacy and a better Siri, I will choose privacy every time.”

Thanks, Garry. If you have any thoughts, positive or negative, about the content of this article, please feel free to email me.

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