Why Apple's most economical iPhone uses recycled, imperfect silicon

Cultures · Published 3 October 2026 Swipe more like this →

In short: When Apple announced the iPhone 16e, the focus was on its entry-level price. But the real story lies in the hardware: a clever strategy of repurposing chips with defective cores to create a high-performance, low-cost device.

The iPhone 16e, announced on February 19, 2025, serves as the entry-level model of the eighteenth-generation iPhone lineup. While originally rumored to be called the 'iPhone SE 4', the final name incorporates an 'e' to signify its 'economical' positioning. To achieve this, Apple utilized a sophisticated manufacturing workaround: the device is powered by the A18 chip, but specifically uses binned processors retained from the standard iPhone 16 production. These particular chips featured a defective GPU core that was rejected during the initial manufacturing process. By disabling the faulty fifth core, Apple transformed these chips into the 4-core GPU versions used in the 16e, effectively eliminating additional procurement costs.

Despite its budget-conscious origins, the 16e brings significant modern upgrades. It features 8 GB of RAM—double the capacity of the third-generation iPhone SE—and supports Apple Intelligence. It also introduces the Action Button, replacing the traditional mute switch, and transitions the entry-level line to a USB-C port. However, this efficiency comes with specific trade-offs. The device lacks the 'Dynamic Island' found in more expensive models, retaining the older notch design from the iPhone 14, and it is the final iPhone model to lack MagSafe support.

The device also marks a shift in connectivity. Unlike the flagship models that rely on Qualcomm hardware, the 16e utilizes Apple's custom C1 cellular modem. While this move lacks mmWave 5G support, testing by CNET's Patrick Holland suggested the C1 modem could match the download speeds of the Qualcomm-powered iPhone 16 Pro Max and even surpass it in upload speeds. This blend of repurposed high-end silicon and custom-designed components defines the 16e's unique place in the Apple ecosystem.

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