The new phone is powered by Apple's own cellular modem chip, called the C1, which processes the phone's AI features. The tools can summarize text and audio, create new emojis and has made Apple's virtual assistant, Siri, more capable. Apple also touted the new phone's more powerful battery and camera, compared with the now discontinued SE.

Apple unveiled the iPhone 16e on Wednesday, emphasizing its affordability. But there's something in this phone that's far more interesting than its price tag: The C1 chip is brand-new Apple Silicon that could spell the end for Qualcomm's modems in future iPhones.