On Wednesday, Apple introduced the iPhone 16e, positioned as an affordable entry-level model in Apple's smartphone portfolio. The real breakthrough, however, happens inside: instead of a Qualcomm modem, Apple's own cellular chip called C1 is used for the first time - a groundbreaking step towards greater independence for the US tech giant. With the iPhone 16e, which comes to market for $599, Apple replaces the previous iPhone SE. This means there is no longer a physical home button including a fingerprint scanner in the budget segment. According to industry observers, Apple aims to test the new modem technology in the field with the entry-level device before incorporating it into the much more popular main models (presumably the iPhone 17) in the future. "This use is a trial run," explains Edward Snyder of Charter Equity Research. He expects Apple to equip up to 20 percent of its fall models with the C1 chip - the rest would continue to be equipped with Qualcomm parts. For years, Apple has been in conflict with Qualcomm because Cupertino accuses the chip supplier of exorbitant licensing fees. So far, both per modem and a flat rate of five to six US dollars per device must be paid in licensing costs - costs in the billions, which Apple could potentially bypass with its own C1 chip. But the path was rocky: after years of delays and issues with coverage of older standards like 3G and 4G, the breakthrough now achieved is considered an important milestone. However, Apple cannot fully dispense with Qualcomm yet, since a patent license agreement runs until 2027. In addition to the end of the SE line, the iPhone 16e brings support for Apple Intelligence, a new AI platform that is initially launched only in selected markets. Although company executives praise the feature as an extra purchase incentive, the international launch shows hesitancy and occasional issues. Nonetheless, according to recent quarterly figures, Apple did noticeably better in markets where Apple Intelligence is already active with its iPhone 16 models.

Although the 16e usually generates small sales figures, it could be the key for Apple to establish its own mobile chip on a large scale and thus make the billion-dollar smartphone business even more profitable.