iPhone SE 4 Launch: What to Expect from Apple’s Affordable Smartphone

iPhone SE 4 is set to make its debut later tonight, and anticipation is high as industry experts speculate what Apple may unveil. Insights from Counterpoint Research indicate that Apple aims to refresh its budget-friendly iPhone SE to attract more users and enhance its service revenue.

The Role of iPhone SE in Apple’s Ecosystem

The iPhone SE series has always acted as an important entry point into Apple’s ecosystem. It provides a cost-effective option and a compact design, appealing to those seeking smaller devices without the need for high-end specifications. This strategy has been especially effective in markets such as Japan and among prepaid customers in the US. By introducing a more affordably priced iPhone, Apple broadens its market reach, driving growth in services like iCloud and Apple Music, and persuading users to buy accessories like AirPods and Apple Watches, thereby maximizing Customer Lifetime Value.

Challenges Ahead for iPhone SE

Nonetheless, Varun Mishra, Senior Analyst at Counterpoint, points out a significant challenge for the iPhone SE series. Its share of overall iPhone sales has diminished to just 1% in 2024. This decline highlights an urgent need for a major redesign to revitalise the iPhone SE and ensure it remains a relevant part of Apple’s offerings.

Anticipated Features of iPhone SE 4

Leaks suggest that the upcoming model could feature a larger display, removal of the Home button, and the implementation of Face ID instead of Touch ID, resembling the aesthetics of newer iPhone models. Additionally, the device is expected to be powered by Apple’s A18 chip, possibly introducing Apple Intelligence with various AI-driven features. There’s also talk of the introduction of Apple’s first in-house cellular modem, which could lessen its reliance on Qualcomm. Rumours indicate that the new iPhone SE might switch to a USB-C port instead of the conventional Lightning port, in line with Apple’s transition towards universal charging solutions, and might incorporate an Action button, similar to those on the iPhone 15 Pro lineup. Some sources suggest that the iPhone SE branding could be replaced with the iPhone 16E, linking it with the upcoming iPhone 16 series.

Aligning with Market Trends and User Preferences

The expected enhancements align well with prevailing market trends and an in-depth understanding of Apple’s user demographics, as revealed by Counterpoint’s recent smartphone survey covering significant markets including the US, UK, China, and India.

The survey provides valuable insights into iPhone usage patterns, directly influencing the strategic direction for the iPhone SE 4 refresh. One notable finding highlights the variance in replacement cycles between Pro and non-Pro iPhone users. Pro iPhone users often pursue “premiumisation” and frequently upgrade, keeping their devices for an average of 2.75 years. In contrast, base iPhone users display a longer upgrade cycle at approximately 3.15 years.

This indicates that the iPhone SE 4, typically seen as a foundational model, has the potential to attract users looking to upgrade from older iPhone versions or entice those contemplating a switch from Android. The anticipated features, especially the bigger screen and superior performance, directly tackle areas where previous SE models may have fallen short, making the SE 4 a more attractive upgrade option.

Importance of iPhone SE 4 for Apple’s Market Position

The successful launch of the iPhone SE 4 will be vital for maintaining Apple’s growth and further solidifying its position in the global smartphone market. The industry will be eagerly watching tonight’s event to see if Apple meets the high expectations and restores the iPhone SE’s significance within its broader iPhone strategy.