Apple unveils new low-cost iPhone

Apple is releasing a new low-end iPhone to replace the aging iPhone SE.

Transcript

00:00Details are out for the newest member of the iPhone family.

00:04Apple is replacing its cheapest model, the iPhone SE,

00:08with a new phone, the 16E.

00:11The low-priced model goes on sale the final week of February

00:14with a price tag of $599.

00:17As hinted in the promo released by CEO Tim Cook,

00:21this upgrade gets rid of the iconic Home button

00:24that's been around ever since the first iPhone.

00:27Instead, users will use Apple Face ID to unlock the phone.

00:32The 16E also gets a modern touch

00:35that includes a sensor notch at the top of the screen.

00:38Besides cosmetic changes, the device runs

00:40on the Apple A18 chip currently in use

00:43in the higher-end iPhone 16.

00:46This means this cheaper model doesn't sacrifice

00:50on processing power.

00:51Another thing not being sacrificed, access to AI.

00:55The low-cost device can utilize

00:57the power of Apple Intelligence.

00:59In order to keep costs down,

01:01Apple brought production of the iPhone cellular modem

01:04in-house instead of buying it from Qualcomm.

01:08There's also only one camera lens

01:11versus the three on higher-end iPhones.

01:15Apple normally waits until September to debut a new iPhone,

01:19but sales of its most important device declined globally

01:23in 2024.

01:25While the new iPhones released last year were AI-ready,

01:28customers were less than impressed with its capabilities.

01:33Turning to markets this Wednesday,

01:35the S&P 500 notched a fresh record-closing high

01:39for the second day in a row.

01:41Minutes from the Federal Reserve's January meeting

01:44show policymakers were inclined to move slowly

01:47on any more interest rate cuts.

01:49They want to see if Trump's tariff policies

01:52further add to a resurgence in inflation.

01:56That'll do it for your daily briefing from New York City.

01:59I'm Conway Gittins with The Street.