Apple is expected to announce a new version of the iPhone SE today, a lower-cost smartphone that could help bolster its global sales. Investors and analysts are watching closely, as Apple has been facing headwinds in key markets, particularly China. CEO Tim Cook hinted at a major product reveal last week, fueling speculation that an iPhone SE refresh is on the way.
A Budget iPhone to Boost Sales?
Apple’s iPhone business has hit a rough patch. The company reported $69.1 billion in first-quarter iPhone sales, a 1% decline from the previous year, missing Wall Street’s $70.7 billion estimate. The decline was most pronounced in Greater China, where revenue fell 11% year-over-year.
A cheaper iPhone SE could help Apple regain momentum. The current SE model, last updated in 2022, starts at $429—a fraction of the cost of premium iPhones. Analysts believe a new SE could attract budget-conscious consumers, particularly in emerging markets where Apple has been expanding its retail presence.
Apple Intelligence: A Key Selling Point?
Apple has been banking on its artificial intelligence initiative, Apple Intelligence, to drive demand. However, the rollout has been slow, and the software is not yet available globally. The new iPhone SE is rumored to include Apple Intelligence, which could make it more appealing to customers who want AI-powered features without paying top dollar for a flagship device.
Markets where Apple Intelligence has already launched have reportedly outperformed those still waiting. If the new SE model comes equipped with these features, it could help drive an upgrade cycle among existing iPhone users.
Emerging Markets: The Next Growth Engine
Apple has been aggressively expanding in emerging markets, opening new stores in India and the United Arab Emirates. The company sees these regions as crucial for future growth, and a lower-cost iPhone SE could help cement its presence.
- Apple reported double-digit growth in its installed base in emerging markets.
- The SE model is seen as an entry point for first-time iPhone buyers.
- Affordability remains a key factor in Apple’s strategy to capture market share outside the U.S. and Europe.
What Analysts Are Saying
Evercore ISI analyst Amit Daryanani maintains an Outperform rating on Apple with a $260 price target. He believes the new iPhone SE could contribute up to $12 billion in revenue, given the historical success of previous SE models.
“The SE may appeal to more consumers and further drive the double-digit growth Apple has been seeing in its installed base,” Daryanani noted in a research report.
The Road Ahead
Apple’s success with the new iPhone SE will depend on pricing, availability, and whether it includes Apple Intelligence. While the company faces stiff competition in China, a budget-friendly iPhone could be just what it needs to regain lost ground. Investors will be watching closely to see if this gamble pays off.
