(Yicai) Feb. 20 -- Apple has launched the new iPhone 16e, a cheaper member of its latest iPhone 16 series that supports its artificial intelligence system, Apple Intelligence.

The US tech giant launched the iPhone 16e at a price of only USD599 yesterday. That compared with the basic iPhone 16's starting price of USD799.

The iPhone 16e is priced at CNY4,499 (USD618) in China, according to Apple's website in the country. The handset will be available for pre-orders starting tomorrow before hitting stores on Feb. 28.

Apple aims to boost sales of cheaper iPhone versions via the new name after the iPhone SE, its previous budget model, saw its sales share among the iPhone's total drop to 1 percent last year from 10 percent when it launched in 2016, according to Counterpoint Research.

With the new phone included in the SE series, the share of this product line will likely bounce back to 10 percent this year after hitting single digits in 2022, according to Jusy Hong, senior research manager at research institution Omdia.

The new iPhone 16e is expected to help Apple expand its presence in emerging markets, including Southeast Asia and Latin America, where consumers are cost-conscious, Zhou Lexuan, an analyst at research firm Canalys, told Yicai.

Apple has faced pressure in China, with its sales dropping 18.2 percent in the fourth quarter of last year from a year earlier. It also ranked third in market share behind domestic giants Huawei Technologies and Xiaomi, which saw sales climb 15.5 percent and 3.9 percent, respectively.

On Feb. 13, Joe Tsai, chairman of Alibaba Group Holding, said that the Chinese e-commerce titan and Apple have reached an AI cooperation agreement. The US firm will likely launch the Chinese version of Apple Intelligence in May.

IPhone sales are expected to recover after the release of Apple Intelligence in different languages and more regions this year, according to analysts.

Editor: Martin Kadiev