Apple’s cheapest iPhone just got $170 more expensive. The iPhone 16e brings some big improvements to the budget end of the market, but its price hike will push it out of reach for many iPhone SE refugees.

The Problem With the iPhone 16e

The iPhone 16e starts at $599 for the 128GB model, with 256GB and 512GB available at $699 and $899 respectively. Overnight, Apple’s newest budget offering wholly replaced 2022’s iPhone SE, which was long overdue for an update.

Apple also decided to discontinue the iPhone 14 and iPhone 14 Plus, though the company still sells the iPhone 15 if you want to split the difference at $699. The message is clear: if you want a “cheap” iPhone, buy the iPhone 16e.

Unfortunately, this is quite a leap from the previous iPhone SE entry point of $429. Though a price hike felt inevitable, seeing Apple dismiss the sub-$500 market entirely was a bit of a shock.

At the heart of the iPhone 16e is the same processor that powers its pricier sibling, the A18. This allows the iPhone 16e to make use of the company’s latest venture, Apple Intelligence. If you aren’t already sick of hearing about it, Apple Intelligence offers generative AI features like Writing Tools, the ability to create your own emoji and images, and will bring bigger changes to Siri (beyond existing ChatGPT integration) in future updates.

It’s no secret that the response to Apple Intelligence has been lukewarm at best. While features like Genmoji can be a lot of fun, some have taken to turning off the feature entirely while others simply forget it’s there. Though Apple clearly sees AI as an important part of its iPhone strategy, it seems to have come at a very literal cost (about $599, to be precise).

Apple’s cut-price offerings don’t have to include the latest chips. The company has been known to repurpose older parts, keeping costs down while providing a good baseline level of performance. This happened with 2024’s iPad Mini refresh, which took its chip from 2023’s iPhone 15 Pro. The iPhone 16e could have been another iPhone SE, with an older chip, at a cheaper price point.

But at $599, the 16e feels like a tough sell. Not only is it a whole pair of AirPods more expensive, but some of the cutbacks sting. The device only sports a Wi-Fi 6 chip, which is outdated. There’s no magnet on-board for wireless charging, which means no faster Qi2 charging speeds. Even the iPhone 13 has Qi2 charging at 15w, and it launched way back in 2021.

Why not cut the fancy housing instead? The iPhone 5c was made of plastic, and it was cool. Most people use a case anyway…

Save the Most Money and Buy a Used iPhone

If you really want to save money on an iPhone, you’ll need to look at the used market instead. You’ll miss out on the unboxing experience and you won’t be the first to put a few dents and scratches on it, but you will be able to save some money.

Used iPhones tend to hold their value better than most smartphones, but it shouldn’t be too hard to find one at the sub-$500 price point previously occupied by the iPhone SE. The iPhone 15 is a logical choice, and a quick glance at eBay shows that the 128GB can be found for under $500.

You’ll pay a little more for unlocked models and higher capacities, so you might want to consider the iPhone 14 instead. Depending on the condition, you could pay around $350 and even less if there are signs of heavy wear.

By going this route, you may be able to secure more of the features that are important to you, like a dual-lens camera system (with support for features like Action Mode to stabilize video) and a faster Wi-Fi chip. You’ll also have a greater range of colors to choose from since the 16e is only available in black or white.

Expect battery to be compromised on a used iPhone. Lithium-ion cells naturally degrade over time, but you can replace them if you’re willing to pay. It’s also worth keeping in mind that the older chips will show their age sooner than newer ones. You won’t get Apple Intelligence, and support for new versions of iOS will end sooner than a brand-new 16e.

Don’t Forget About Apple Refurbished

While Apple no longer sells the iPhone 13 or 14 (and the relevant Pro models) in a brand new condition, the company has a selection for sale over at Apple Refurbished. For example, a refurbished iPhone 14 starts at $529, while an iPhone 13 Pro starts at $589.

This is a particularly compelling option for anyone who doesn’t need the latest and greatest, but who still appreciates the iPhone user experience. Apple runs a suite of tests, replaces failing parts, cleans, and updates the iPhone prior to sale. You even get a new outer shell (which means no scratches), and a new battery.

Considering the price of Apple’s battery replacement service on an iPhone 14 costs $99, the refurbished program offers good value if you can find the model you like. Refurbished models are also sold in a new box, with a new charging cable.

The iPhone 16e Isn’t All Bad

The iPhone 16e is an expensive device compared to what it replaces, so it’s hard not to make those comparisons. That said, there are some silver linings. The A18 chip, in particular, will “future-proof” the device against iOS updates and gradual device slowdown just as well as a full-price flagship.

Another worthy inclusion is a 48MP single wide-angle camera on the back. This blows the 12MP camera on the previous iPhone SE out of the water. A shift to USB-C is nice too, and if you’re actually interested in Apple Intelligence then you might be pleased about the AI-focused future Apple is pushing.

But at this point, it’s hard to recommend the 16e when the far more accomplished feature-rich iPhone 16 is only $200 away. It’s not that $200 isn’t a lot of money, it just doesn’t feel like much of a saving when you’re already $600 in the hole.