It Might Be Time to Say Goodbye to Apple’s Cheapest iPhone

An iPhone with almost the same performance as iPhone 14 About half the price sounds like a great idea, right? Apparently not. If the analyst believes Ming-Chi Kuo, Apple may scrap the next version of the budget-friendly iPhone SE that was expected to arrive next year.

“Supply chains have received instructions from Apple indicating that 2024 iPhone SE 4 production and shipment plans have been canceled rather than postponed,” Kuo wrote in a Jan. 6 Medium post.

If Kuo’s prediction is correct, only Apple knows the reasons behind the cancellation. But according to research and media reports, there may be a very simple answer. More expensive iPhone models tend to be more popular, and there may be little incentive for Apple to continue pursuing cheaper phones like the iPhone SE.

Apple did not immediately respond to CNET’s request for comment.

The third-generation iPhone SE, which debuted in March and starts at $429, is essentially an iPhone 8 with the guts of the iPhone 13. His iPhone SE (2022) reviewbut he also highlighted the missing elements that make it feel dated, such as the camera’s full-screen design and lack of a night mode.

The previous generation iPhone SE took a similar approach. The 2020 version had basically the same design, but with the iPhone 11 chip. The 2016 model has an iPhone 6S processor in the body of the iPhone 5S. According to YouTube personality and gadget leaker Jon Prosser, the rumored 4th generation iPhone SE was expected to feature a new design similar to the iPhone XR.

To understand why Apple canceled the upcoming iPhone SE, consider the changes Apple recently made to its iPhone 14 lineup. Unlike the past two years, Apple didn’t release a cheaper “mini” version of its new flagship iPhone in 2022. Instead, it released a larger version of the regular iPhone 14 called the iPhone 14 Plus. This is $100 more expensive. Higher than the regular $799 iPhone 14, raising the barrier to entry for shoppers.

The change follows reports from the Nikkei Asian Review and Kuo (via MacRumors) that Apple will scrap the iPhone Mini in 2022, with the former adding that the Mini model has not resonated with consumers. Taken together, the discontinuation of the Mini and reports that next year’s rumored iPhone SE may be discontinued could indicate that Apple is moving away from releasing smaller, cheaper iPhones.

But Gene Munster, a managing partner at technology investment firm Loup and a longtime Apple analyst, doesn’t see it that way. He believes the iPhone SE will still play an important role in Apple’s lineup due to its low price.

“Still, when it comes to the iPhone, I think it’s the best value for your money,” he said.

Evidence suggests that more expensive iPhones tend to be top sellers, which may help explain the shift. According to Counterpoint Research, average selling prices of iPhones increased 7% year-over-year in the third quarter of 2022. The market research firm also reported in June that Apple captured his 62% share of the global market for premium phones in the first quarter of 2022. The generation iPhone SE starts at $429, so it falls into that category. However, the report says that Apple’s growth in the premium category is largely due to the iPhone 13 lineup.

The more expensive iPhone 14 Pro and Pro Max also seem to be the stars of Apple’s new smartphone lineup so far. The Information reported that Apple cut production of the iPhone 14 Plus within two weeks of its launch, but research firm Trendforce says Apple has ramped up production of the iPhone 14 Pro and Pro Max. .Kuo too said on Twitter In September, the iPhone 14 Pro Max accounted for about 60% of the increase in orders for Apple’s Pro lineup, suggesting that Apple’s most expensive new iPhone is the most popular. According to his November 2022 report for Wave7 Research, 38 of his 39 careers surveyed his service reps said they didn’t have an iPhone 14 Pro or Pro Max in stock in stores. I’m here.

Meanwhile, the iPhone SE has only accounted for about 5% to 8% of U.S. quarterly sales over the past two years, said Josh Lowitz of Consumer Intelligence Research Partners. Munster said that when looking at total sales of his latest iPhone models in a given year, the Pro version typically accounts for 35% to 40% of his sales, while the iPhone SE accounts for about 20%. .

carrier discount And like my colleagues, it’s now easier to get high-end phones at cheaper prices, especially when you trade in older devices. Eli Blumenthal pointed out After the launch of the iPhone 13. Many U.S. shoppers pay for their mobile phones on monthly installment plans through their carriers, making it easy to swallow high prices. Both of these factors make it even harder to buy a cheap iPhone with fewer features.

“A $100 price difference per month, or even a $200 price difference per month, isn’t that much when you’re paying for that long,” says Lowitz.

At the same time, Samsung is thriving in the low-cost mobile phone market. According to Counterpoint Research data previously provided to CNET, Galaxy A phones are typically hundreds of dollars cheaper than flagship Galaxy S phones and account for his 58% of Samsung’s smartphone sales in 2021. was Samsung’s Galaxy A phones often run on less powerful processors than Samsung’s more expensive phones, but they do come with modern features not found in the iPhone SE, such as cameras with multiple lenses and larger screens. It has the function of

The idea that Apple may have canceled the 2024 iPhone SE raises questions about the future of the SE line in general. Apple will extend his SE brand to the Apple Watch for the first time in 2020, launched a sequel to that product in September.

The fact that Apple brought the SE line to a separate product made the SE seem like a more permanent fixture in Apple’s lineup. , the days of the iPhone SE may be coming to an end. And if you take a closer look at how Apple’s smartphone lineup has changed, and data on phone shipments, it’s easy to see why.

But Münster isn’t convinced cheap iPhones like the SE will go away forever. Providing more affordable options helps Apple achieve its broader goal of drawing more customers to the web of its products and services.

“I think it plays an important role,” he said. “I don’t think Apple is giving up on that price range.”