Back in 2016, Apple announced iPhone SE, an affordable smartphone starting at $399. However, Apple did not release any updated version of the device in the following years. Last month, Nikkei reported that Apple is planning to release a successor to iPhone SE in 2020. Today, TF International Securities analyst Ming-Chi Kuo confirmed the same again. Apple’s upcoming low-cost iPhone will feature 4.7-inch LCD display and will look like the existing iPhone 8 device. Internally, the iPhone SE2 will be powered by the Apple A13 processor that’s used in the latest iPhone 11 series. It will also feature 3GB LPDDR4X RAM allowing all the latest apps to run comfortably in this low cost device. Like the iPhone SE, the iPhone SE2 is expected to be priced at $399.
Apple expects this new low-cost device to drive sales volume in Q1 2020. “iPhone SE2, which will be the best upgrade choice for existing 100mn iPhone 6 series users, will be a key growth driver for Apple in 2020,” analyst Kuo said. With this launch, Apple is planning to win back some customers from Chinese rivals including Huawei, Xiaomi, Oppo and Vivo. The decision to release to low-cost iPhone is not surprising given the fact that iPhone sales is declining year over year. Apple is planning to attract new customer base using low-cost devices and then monetize them through services like Apple TV Plus, Apple Music and others.