Apple has announced a new iPhone that costs less than its flagship phones.

Apple says the iPhone 16e's processor has the same processor as the larger iPhone 16, but has similar storage options, although the specifications elsewhere are lower, including fewer cameras.

Apple has been trying to find a new product that inspires consumers - iPhone sales fell at the end of last year.

Hopefully bringing enhanced AI capabilities to a cheaper phone will solve this problem - but analysts have been cautious about the sales boost this tool brings.

Its name is clearly the nod of its iPhone SE series, which was released from 2016 to 2022 and is significantly lower in price.

Apple says iPhone 16E will be available for pre-orders in 59 countries on February 21

It will be launched in the UK for £599, £200 less than the iPhone 16, but the original iPhone SE was more than twice as good as it was when it was launched in 2016.

"Now, this has become one of the most affordable iPhones on the market right now," industry analyst Paolo Pescatore told BBC News.

“This move should help accelerate adoption, especially for companies with Apple intelligence entrenched in AI.

“Apple’s trust and credibility are crucial – this alone can help sell and attract users of competitor devices and platforms.”

Most of the conversation around the new phone may revolve around its power, with Apple choosing to use the same A18 chip behind its expensive devices.

This means that the 16E will be able to play the same game and run the same apps as other iPhones - although AI may be at the heart of that decision.

Apple owner Tim Cook said in the announcement that the new model features "the performance, intelligence and privacy of Apple fans" companies.

The Apple Intelligence feature on the device will "help you save time, get more things done quickly, and express yourself in new ways," he said.

The company uses this series of devices to introduce a spin on technology - Apple Intelligence, which includes new tools for writing and incorporating Openai's Chatbot Chatgpt into Siri.

This is not always the case for companies Paused for a while Its AI-generated news alerts after creating fake headlines attributed to news organizations including the BBC.

Now, it introduces an italic summary.

Apple said its new phone was "made for Apple smartly" and pointed out some features of the technology, such as an easy way to clean up photos or search for image libraries.

Other phone manufacturers have similar features on their devices - although the iPhone 16E will be the cheapest way to access Apple phone AI so far.

"The iPhone 16E generates new revenue streams for Apple, which is particularly striking in major markets like India, as the iPhone is out of reach for most people," said Dipanjan Chatterjee, chief analyst at Forrester. ”

“ Cheap devices such as iPhone 16e also have second-order effects, bringing new customers into the Apple ecosystem.

“On the basis of many installations, we have seen limited appetite upgrades from previous versions, but the new phone reduces the cost barrier to joining the Apple Intelligence Bandwagon.”