The iPhone 16e represents a huge change from the third-gen iPhone SE it replaces. A modern design, OLED screen, Face ID, latest(ish) A18 chip, Apple Intelligence, 48MP camera sensor, 26-hour battery, USB-C, C1 modem, and more.But theres one other huge difference, and its this one which I think makes the latest entry-level iPhone a crucial experiment for the Cupertino company The price tag.The iPhone SE 3 started at $429, while the iPhone 16e starts at $599.Of course, youre getting a lot more phone for your money, and its entirely possible to make the case that the latest model represents better value. But whats notable is that Apple didnt add the iPhone 16e to the line-up; it replaced the budget model altogether.Theres no iPhone SE 4 as such, and the 3rd-gen model is no longer on the companys website. Right now, if you want to buy a brand new iPhone direct from Apple, $599 is the new starting price.$600 is a lot of money when compared to an awful lot of mid-range Android phones, and Apple is gambling that enough of the people whod previously bought the iPhone SE are willing to pay an extra $170 to instead buy the iPhone 16e.It seems entirely obvious that some of the people who were willing to lay out $429 are not willing to hand over $599. The crucial question here is will enough of them do so to make the math work out in Apples favor?The equation here is ($429 x loads of sales) vs ($599 x fewer sales).Some might say Apple is confident that the second number will be bigger or, at least, the profit on the second number. But I dont think thats the case: I dont think Apple knows. In my view, this is an A/B experiment on the part of the company, and the result of that experiment will determine its future entry-level strategy.If Apple makes more profit by selling the more expensive phone to fewer people, the $400-ish price point will be gone forever; if not, some kind of iPhone SE will return.Image: AppleAdd 9to5Mac to your Google News feed. FTC: We use income earning auto affiliate links. More.Youre reading 9to5Mac experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Dont know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel