Apple is anticipated to unveil a new budget-friendly model to succeed the iPhone SE 3 next week, featuring a range of enhancements. These upgrades, particularly the inclusion of Apple Intelligence support, are likely to significantly boost the popularity of the upcoming iPhone compared to previous entry-level models.
According to supply chain analyst Ming-Chi Kuo, Apple is projected to ship 12 million units of the iPhone SE replacement in the first half of this year, followed by an additional 10 million units in the latter half.
This 22 million unit forecast stands in contrast to the typical shipment of fewer than 20 million iPhone SE units in the first year post-launch, as noted by Kuo.
Kuo highlights three main advantages for Apple with the new iPhone model set to launch next week.
First, by releasing a more affordable iPhone amidst flagship model launches, Apple can mitigate the usual seasonal sales decline. Second, incorporating Apple Intelligence into a cost-effective iPhone will likely lead to broader usage of Apple’s AI features. Finally, the new iPhone SE replacement is expected to include Apple’s first-ever in-house developed modem.
Testing this modem in a less critical device is vital for Apple’s strategy. Meanwhile, Kuo believes Qualcomm will still have opportunities to collect licensing fees for its modem patents, even as Apple transitions away from Qualcomm modems.
The successor to the iPhone SE, potentially named iPhone 16E, is speculated to adopt the design of the iPhone 14 instead of the iPhone 8. This change would involve replacing Touch ID with Face ID, reducing bezels, and implementing a flat-sided design, while maintaining a single rear camera.
Apple has indicated that iPhone sales have increased in regions where Apple Intelligence is available, suggesting that the integration of AI features is enhancing sales compared to markets like China, where such functionality is absent. The rollout of Apple Intelligence to additional markets is anticipated by this summer.
We will see how these developments unfold on Wednesday during Apple’s scheduled product launch event.
In addition to the new iPhone, several unreleased products, such as the iPad 11 featuring Apple Intelligence and the MacBook Air equipped with Apple’s M4 chip, are expected to be announced in the coming weeks.
