March 2 (Reuters) - Apple on Monday launched iPhone 17e, its more affordable smartphone model that starts at a price of $599 with 256 gigabytes of storage, as it looks to defend its share in a fiercely competitive global handset market.
The move comes as memory chip prices climb amid a global shortage, suggesting Apple is willing to absorb some component cost pressure to make its lowest-priced model more compelling.
By offering higher storage at the same price point, Apple is positioning the 17e as a stronger value option as it looks to attract new users and defend market share against rivals facing tighter supply constraints.
Some analysts view the higher storage at the same starting price as effectively a price cut, since customers previously had to pay an upcharge to access the higher capacity.
Customers in more than 70 countries and regions will be able to pre-order the iPhone 17e starting at 6:15 a.m. Pacific Time on Wednesday, with the device set to go on sale beginning March 11.
The iPhone 17e is powered by Apple's latest-generation A19 chip, built on 3-nanometer technology, marking a performance upgrade for the company's entry-tier lineup.
The device also includes Apple's new C1X modem, which the company said offers faster cellular speeds while consuming less power.
The 17e gains MagSafe support for the first time in the "e" series, allowing users to access Apple's magnetic ecosystem of chargers and accessories and enabling wireless charging speeds of up to 15 watts, compared with slower standard Qi charging on the prior model.
Apple on Monday also introduced its redesigned iPad Air powered by the new M4 chip, with the 11-inch model starting at $599 and the larger 13-inch version at $799.
Separately, Google has explored hosting servers in its data centers to power an upcoming version of Siri using Gemini, while meeting Apple's privacy standards, at the company's request, the Information reported on Monday.
Apple and Google did not immediately respond to Reuters' requests for comment on the report.
(Reporting by Akash Sriram in Bengaluru and Stephen Nellis in San Francisco; Editing by Anil D'Silva)
