Apple has announced a new iPhone which brings artificial intelligence (AI) features at a lower cost than its flagship handsets. The iPhone 16e has the same processor as the more expensive iPhone 16, Apple said, with similar storage options, though a lower spec elsewhere, including fewer cameras.

The iPhone 16e is the first update to the company’s most affordable model since 2022, but carries a higher price tag of $599.

Apple launched on Wednesday a budget-minded phone with artificial intelligence, the iPhone 16e, designed to win back mid-market customers at home and in crucial growth markets China and India.