No one was sure how the iPhone 16e would do. It is a huge upgrade over its spiritual predecessor, the iPhone SE 3, but even though it offers the core iPhone 16 experience, it omits many flagship features. A recent report revealed that there was sizeable demand for the phone. And according to a new analysis, its internals make it stand out.The iPhone 16e has a 6.1-inch display, just like the iPhone 16and the two also share the A18 chip and support Apple Intelligence. The iPhone 16e has a modern design, but it has a notch instead of Dynamic Island, and it only has one rear camera. The new phone does have an Action button, but not the Camera Control button. It also doesn’t support MagSafe wireless charging.
Per industry analysis firm Counterpoint, the iPhone 16e helped Apple outsell other smartphone companies in Q1 2025.
The handset is the first Apple phone to have an in-house modem. Counterpoint has learned that the phone has more home-brewed components than any handset in Apple’s lineup.
iPhone 16e features more in-house components than other iPhones. | Image Credit – Counterpoint
40 percent of components that went inside the iPhone 16e were made by Apple. In contrast, only 29 percent of the iPhone 16‘s internals are Apple-made, and 31 percent of iPhone se 3 parts are in-house.
In addition to the modem, the phone also features custom-built processing and power management parts. The proprietary C1 modem allowed Apple to save $10 on every device.
The C1 modem allowed Apple to save $10 on every iPhone 16e. | Image Credit – Counterpoint
The stripped-down specs and home-grown components are seemingly what allowed Apple to achieve a starting price of $599, making the iPhone 16e $200 cheaper than the iPhone 16.
The addition of another internally engineered part gives Apple even tighter control over the iPhone 16epotentially making for a better user experience. We already know that despite being technologically inferior to the Qualcomm Snapdragon X71 5G modem found in the iPhone 16 series, the iPhone 16e‘s C1 modem delivers better upload and download speeds in most instances.
It’s also more power efficient and its design freed up space for a bigger battery.
The iPhone 16 may be the better phone on paper, but with a higher share of tailor-made components, the iPhone 16e holds its own.
