The iPhone 16e boasts a more powerful A18 processor, improved battery life, and a new Apple-designed C1 modem. However, it lacks some features found in the more expensive iPhone 15, such as a brighter screen, ultrawide camera lens, and Qi2/MagSafe wireless charging. The iPhone 16e's launch in 59 countries may be limited due to carrier certification requirements for the new modem. Analysts believe the lack of a sub-$500 iPhone won't greatly affect consumers, as many purchase phones through carriers, and there's a trend towards premium devices. Apple may be positioning itself for future revenue streams through Apple Intelligence and potential subscription services.