(Reuters) – Apple is gearing up to unveil its latest budget-friendly iPhone model on Wednesday in a strategic move to capture a larger portion of the mid-range smartphone market and combat competition from major players like Samsung and Huawei in China. The upcoming fourth iteration of the economy model, currently dubbed iPhone SE, is set to compete head-to-head with popular Android smartphones at a time when manufacturers of consumer electronics are integrating artificial intelligence capabilities into their devices.
The present-generation iPhone SE, which was introduced in 2022, is presently priced at $429, and industry observers anticipate the new version to come at a premium compared to its predecessor. In comparison, the iPhone 16, which was launched in September, starts at $799 for its base model. Counterpoint Research senior analyst Varun Mishra remarked, “If the SE 4 delivers significant enhancements in terms of design, performance, and AI functionalities, it could potentially reinvigorate its market appeal and fortify Apple’s presence across various price brackets.”
Apple recently projected robust sales growth, indicating that the company is poised to bounce back from a decline in iPhone sales by incorporating artificial intelligence features into its devices, which will be rolled out to additional regions and languages in the following months. Nevertheless, analysts remain cautious about the impact of these tools on sales, given that Apple’s AI features will be gradually introduced in certain regions for its latest iPhone 16 series and the iPhone 15 Pro model.
The contribution of the SE model to total iPhone revenue has decreased from 10% since its debut in 2016 to approximately 1% last year, as per Counterpoint Research. The anticipated update for this year is expected to overhaul its traditional design, eliminate the physical home button, introduce the FaceID feature, and include camera and processor enhancements to support AI functionalities, according to insights from analysts and media reports.
The SE model is anticipated to be the final iPhone to transition to the USB Type-C charging port, a shift from its proprietary Lightning connector. Apple has already phased out the current SE and iPhone 14 in the European Union due to non-compliance with local regulations mandating the USB Type-C charging standard. The latest SE model is expected to enable Apple to re-enter the EU market.
(Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)
