Apple has quietly launched the iPhone 16E through a simple press release, but this budget-friendly model serves a bigger purpose beyond just being the company’s most affordable iPhone of 2025.
It also debuts Apple’s first in-house 5G modem, the Apple C1—a major milestone following the company’s acquisition of Intel’s mobile chip division in 2019.
While Apple hasn’t disclosed detailed specifications of the C1, the company claims it delivers strong performance with improved power efficiency. Expanding the advantages of Apple Silicon, the C1 modem is designed for fast and reliable 5G connectivity while consuming less power, contributing to the iPhone 16E’s impressive battery life.
The combination of Apple Silicon, an optimized internal design, and iOS 18’s advanced power management results in exceptional energy efficiency.
Before 2019, Apple relied on modems from both Intel and Qualcomm for its iPhones, though Qualcomm’s chips were widely considered superior. When Apple acquired Intel’s chip division, many expected the company to roll out its 5G modem much sooner.
However, it wasn’t until today (February 19) that Apple unveiled its first in-house solution—nearly six years after the acquisition.
Apple wants more control over the iPhone.
Apple has been steadily taking control of the key technologies needed to produce its iPhones, aiming to cut licensing costs and reduce reliance on third-party components. While this strategy is largely about maximizing profits, there’s also the “Qualcomm factor” at play.
Apple and Qualcomm have been locked in legal battles for years, clashing over patents and accusing each other of monopolistic practices. With the introduction of the Apple Silicon C1 modem, Apple now has the opportunity to sever ties with Qualcomm entirely. However, this will only happen if the C1 proves to be a viable alternative for high-end iPhones.
For now, the iPhone 16E serves as a testing ground for Apple’s first in-house modem. Whether it matches or surpasses Qualcomm’s latest 5G technology remains to be seen.
