Based on the images, it looks like Apple has simply replaced the magnets with foam to fill the space (pay attention to the square-shaped positioning magnet below the MagSafe ring).

iPhone 14/15/16e are all 7.8mm thick. I can’t think of any reason why Apple can’t fit MagSafe magnets in the iPhone 16e’s body. This probably echoes my assumption in my previous review:

I think the strongest argument here is that if Apple has been comfortable launching the iPhone 15 with 20 hours of battery life (video play) and the iPhone 16 with 22 hours of battery life in the past two years, there is no absolute reason for them to sacrifice another feature to save more internal space for a bigger battery.

More than likely, MagSafe was removed to create a clearer feature gap between the iPhone 16e, the iPhone 15, and the soon-to-be-discounted iPhone 16. Then there would be more space reserved for a bigger battery.

Apple is more focused on creating differentiation or price discrimination than pursuing a great user experience.

Photo credit to iFixit; pointing arrow added by me.

iPhone 16e teardown:

iPhone 15 teardown:

iPhone 14 teardown: