Precision finding on my airtags not working in my new iPhone 16e

The iPhone 16e does not support Precision Finding of AirTags because it lacks Ultra Wideband radio support. That is one of the features (along with a 0.5x camera, MagSafe charging, and cabled video output) which regular iPhone 16 models got, and the iPhone 16e didn't.

AirTag - Tech Specs - Apple Support

Footnote 1 says "Precision Finding is compatible with iPhone 11 models and later, excluding iPhone SE (2nd and 3rd generation) and iPhone 16e." (emphasis mine)

Use AirTag and Find My to keep track of your personal items - Apple Support

"Use Precision Finding to pinpoint the location of your item with Find Nearby

If your AirTag is within Bluetooth range, tap Find Nearby to help find it, even if it's stuck between couch cushions or hiding under a stack of mail.

Find Nearby is supported on iPhone models with Ultra Wideband." (The iPhone 16e isn't on the list.)

Compare iPhone models – iPhone 16e vs. iPhone 16 vs. iPhone 17

The "Cellular and Wireless" section says the iPhone 16 and 17 have an "Apple second-generation Ultra Wideband chip." The column for the iPhone 16e says "—" (because the iPhone 16e doesn't have Ultra Wideband support.)

what the AI says

"Precision Finding is not working on your iPhone 16e because this model lacks the Ultra Wideband (UWB) chip required for the feature. To fix this, you will need to get closer to the AirTag and use the less precise "Directions" button in the Find My app to navigate to it, or use a different Apple device that supports Precision Finding. 

What to do

• Use the "Directions" button: When you open the Find My app, instead of seeing a directional arrow, you will likely see a "Directions" button. Tap this to get directions to the AirTag's last known location via Maps.
• Move closer: Precision Finding only works at close range (around 30-40 feet). If the AirTag is further away, you will not see the "Find Nearby" button, and you will need to use a map to find it.
• Check location services: While it won't enable Precision Finding, ensuring your location services are enabled is a necessary first step for basic tracking. Go to Settings > Privacy & Security > Location Services and make sure Location Services is on. Then scroll down to Find My and select While Using the App and Precise Location.
• Use a different device: If you have another Apple device with a U1 or newer chip (like an iPhone 11 or newer, excluding the 16e), you can use that device for Precision Finding to get the most accurate results.Consider environmental factors: Even with a compatible device, things like walls and other objects can interfere with Precision Finding, forcing the app to rely on less precise Bluetooth proximity detection instead.

This video explains how to fix issues when AirTags are not connecting to iPhone, including checking battery and restarting your device:

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Precision finding on my airtags not working in my new iPhone 16e - Google-