(Reuters) – Apple is gearing up to unveil its latest budget-friendly iPhone model on Wednesday in a bid to capture a larger portion of the mid-range smartphone market and combat fierce competition from rivals like Samsung and China’s Huawei. The upcoming fourth iteration of the lower-priced model, currently dubbed iPhone SE, is poised to take on popular Android devices at a time when consumer tech brands are integrating artificial intelligence features into their products.
The existing iPhone SE, launched in 2022, is priced at $429, and the newest iteration is anticipated to command a premium compared to its predecessor. By comparison, the iPhone 16, released in September, starts at $799 for the base model. “If the SE 4 offers significant enhancements in terms of design, performance, and AI capabilities, it could inject fresh appeal into the market and fortify Apple’s competitive stance across various price segments,” remarked Varun Mishra, a senior analyst at Counterpoint Research.
In a recent announcement, Apple indicated robust sales growth projections, signaling a potential rebound from a decline in iPhone sales, facilitated by the introduction of AI functionalities to more regions and languages in the forthcoming months. Nonetheless, analysts have exercised caution regarding the potential sales impact of such features, considering that Apple’s AI offerings are slated for phased rollouts in select regions for the latest iPhone 16 lineup and the iPhone 15 Pro model.
The contribution of the SE model to total iPhone revenue has dwindled from 10% since its debut in 2016 to approximately 1% last year, as per data from Counterpoint Research. This year’s update is expected to bring about a redesign, the elimination of the physical home button, and the introduction of Face ID, in addition to enhancements to the camera and processor to support AI capabilities, as outlined by analysts and media reports.
The latest SE model is set to be the final iPhone to transition to the USB Type-C charging port, departing from Apple’s proprietary Lightning connector. Notably, Apple has ceased sales of the current SE and iPhone 14 models in the European Union due to non-compliance with local regulations mandating the use of the USB Type-C charging standard. The forthcoming SE model would enable Apple to re-enter the EU market.
(Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)
