*

iPhone 16e will feature a new C1 modem chip

*

Device to run Apple Intelligence features, including

ChatGPT

*

Device to be available in 59 countries from February 28

(Adds details on the iPhone and background throughout)

By Stephen Nellis and Akash Sriram

Feb 19 (Reuters) - Apple ( AAPL ) launched its latest

low-cost model, dubbed the iPhone 16e, on Wednesday as it looks

to grab a bigger share of the mid-range smartphone market and

fend off competition from rivals such Samsung and

China's Huawei.

The new phone, which leaves behind the SE naming convention

for Apple's ( AAPL ) budget series, will take on popular Android

smartphones at a time when consumer electronics makers are

looking to add artificial intelligence tools to their devices.

Priced at $599, the iPhone 16e will have enough computing

power to run Apple Intelligence, the set of features that

includes integrated access to ChatGPT.

Apple ( AAPL ) late last month forecast strong sales growth signaling

that it will recover from a dip in iPhone sales as it rolls out

artificial intelligence features to more regions and languages.

However, analysts have been cautious about the sales boost

such tools could provide as the AI features are set to be

launched in phases in some regions on its latest iPhone 16

line-up and the iPhone 15 Pro model.

The sales of SE model as part of total revenue for iPhones

has dropped from 10% from its introduction in 2016 to about 1%

last year, according to Counterpoint Research.

The iPhone 16e will come with the A18 chip that powers more

expensive models launched in September last year and will

support Apple Intelligence out of the box.

It will be about $200 less expensive than the cheapest

version of iPhone 16, launched in September.

The iPhone 16e will also be the first device from Apple ( AAPL ) to

feature the C1 chip, which is the first modem designed in house

for cellular connectivity, a shift from chips made by Qualcomm ( QCOM )

.

The new device's camera system will have a 48 megapixel

sensor and two lenses, one of which will be a two times zoom

lens integrated into the primary camera.

Previous SE models were known for their smaller screen size

and attracted a niche group of buyers, but the latest generation

comes with a 6.1 inch display, the same as the least expensive

iPhone 16 model.

This year's much-anticipated update brings a change to its

slab-design, nixing the physical home button and introducing

Apple's ( AAPL ) FaceID feature.

Apple ( AAPL ) said the iPhone 16e will be available for pre-order

from February 21 in 59 countries, including the U.S., China and

India and will be available from February 28.

The SE model would be the last among iPhones to adopt the

USB Type-C port for charging, leaving behind Apple's ( AAPL ) proprietary

Lightning connector and letting it return to the European Union

market.

Apple ( AAPL ) had discontinued the third-generation SE model and

iPhone 14 in the EU as the products did not conform with local

laws requiring USB Type-C charging standard.

(Reporting by Akash Sriram in Bengaluru; Editing by Arun

Koyyur)