It may be time to say goodbye to Apple’s cheapest iPhone

An iPhone that offers the same performance as the iPhone 14 for about half the price sounds like a great idea, right? Apparently not. According to analyst Ming-Chi Kuo, Apple can do it crumb the next version of the low-cost iPhone SE, due next year.

“Supply Chain Receives Guidance From Apple That 2024 iPhone SE 4 Production And Shipping Plans Are Canceled Rather Than Delayed”Kuo wrote in a January 6 Medium post.

More expensive iPhones are preferred

If Kuo’s predictions are correct, only Apple knows the reason for this cancellation. But research and media reports suggest there may be a very simple answer. The more expensive iPhone models the most famousthis may not be an incentive for Apple to continue selling cheaper phones like the iPhone SE.

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

The third-generation iPhone SE debuts in March 529 euros and is essentially an iPhone 8 packed with iPhone 13 internals. In his review of the iPhone SE (2022), CNET’s Patrick Holland called it an “amazing value.” But he also noted missing elements that seemed out of date, such as a full screen design or a night mode for the camera.

Previous generations of the iPhone SE took a similar approach; The 2020 version had essentially the same design, but featured a chip from the iPhone 11. The 2016 model had an iPhone 5S body with an iPhone 6S processor. According to rumors, the fourth generation iPhone SE would receive the new one the design is similar to the iPhone XRaccording to leaker and YouTube personality Jon Prosser.

The change started with the iPhone 14

To understand why Apple might cancel the next iPhone SE, take a look at the changes Apple recently made to the iPhone 14 lineup. Unlike the previous two years, Apple did not release a “Mini” version. Cheaper than the new flagship iPhone in 2022. Instead, it turned on A larger version of the iPhone 14 Base called iPhone 14 Plus 150 € more expensive to €1,019 from the standard iPhone 14, which raises the barrier to entry for buyers.

The change follows reports from the Nikkei Asian Review and Kuo (via MacRumors ) that Apple will discontinue the iPhone Mini in 2022, with the former adding that the Mini model isn’t resonating with consumers. The cancellation of the iPhone Mini and reports of the iPhone SE coming out next year may indicate that Apple is moving away from marketing.A smaller and cheaper iPhone.

But longtime Apple analyst Gene Munster doesn’t see it that way. According to him, the iPhone SE still plays an important role in Apple’s lineup due to its low price.

“I think it’s still the best value for an iPhone”he declared.

Apple is rumored to be canceling the iPhone SE next year due to high demand for more expensive smartphones like the iPhone 14 Pro and Pro Max (pictured). (Credit: James Martin/CNET)

The more expensive iPhone sells better

it seems that The most expensive iPhone generally be best selling, may help explain this variation. The iPhone has an average selling price increased by 7% On a year-over-year basis in the third quarter of 2022, according to Counterpoint Research. The market research firm also reported in June that Apple dominates the global premium smartphone market 62% share In the first quarter of 2022. It’s important to note that this is how Counterpoint defines high-end smartphones. Devices costing $400 or more, which means that the third-generation iPhone SE will fall into this category, as it starts at $429 (€529). However, the report shows that Apple’s growth in the high-end category is largely stagnant iPhone 13.

The (more expensive) iPhone 14 Pro and Pro Max also appear Stars Apple’s new line of smartphones to date. According to information, Apple has released information about this iPhone 14 Plus discontinued According to research firm Trendforce, within two weeks of its launch, Apple Increased production of iPhone 14 Pro and Pro Max. There is also Kuo
He said on Twitter
In September, the iPhone 14 Pro Max was responsible for approx 60% Apple’s growing orders for its Pro line show that Apple’s most expensive new iPhone is also its most popular. A report published by Wave7 Research in November 2022 further suggests that 38 out of 39 operator service representativesRespondents said they did not have in-store stock for the iPhone 14 Pro or Pro Max.

Meanwhile, the iPhone SE only accounted for approx 5-8% of quarterly sales iPhones in the US over the past two years, said Josh Lowitz of Consumer Intelligence Research Partners. If we look at the total volume of newer iPhone models in any given year, the Pro versions usually count 35-40% of salesiPhone SE represents about 20%According to Munster.

The role played by operators

The discounts are given by operatorsAs our colleague Eli Blumenthal pointed out after the iPhone 13 launch, they’ve made it easier to get high-end smartphones for less, including trade-ins. Many US shoppers also pay with their smartphones. monthly installments can make it easier to absorb higher prices from operators. These two factors can make it difficult to buy a cheaper iPhone with fewer features.

“Because you’re paying over such a long period of time… $100 or even $200 a month isn’t that big of a price difference”Lovitz said.

At the same time, Samsung was successful in this field cheap smartphone market. Its Galaxy A phones are usually hundreds of dollars cheaper than the flagship Galaxy S models. 58% of unit salesSmartphones from Samsung in 2021, according to Counterpoint Research previously provided to CNET. Samsung has Galaxy A models modern features like a multi-lens camera and larger screen are not found on the iPhone SE, although they often run on less powerful processors than Samsung’s more expensive models.

What’s next for other SE products?

The idea that Apple could Cancel 2024 iPhone SE raising questions about the future of the SE range in general. Apple first extended its SE branding to the Apple Watch in 2020, and introduced a follow-up to that product in September.

Apple’s relegation of the SE line to another product made it seem like a more permanent part of Apple’s lineup. But if Kuo’s predictions are correct, The iPhone SE’s days may be numbered. After taking a closer look at how Apple’s smartphone lineup has changed and data on phone shipments, it’s easy to see why.

But Munster isn’t convinced that cheaper iPhones like the SE will disappear forever. Having a more affordable option allows Apple it is easier to achieve your goalwider, that is, to attract more customers to the network of products and services.

CNET.com article adapted from CNET France