Analysts from Omdia and Canalys have provided insights into Apple’s strategy and the anticipated features of the upcoming iPhone SE.
According to Jusy Hong, Senior Research Manager at Omdia, the forthcoming iPhone SE is expected to receive significant specification upgrades, positioning it as an affordable choice for users desiring an iPhone with advanced capabilities. By integrating the latest chipsets, this model aims to broaden Apple’s base of AI-capable devices, making features like enhanced Siri and machine learning accessible to a wider audience.
Jusy Hong emphasizes that the entry-level iPhone lineup serves as a gateway for new users into Apple’s ecosystem, particularly with the introduction of Apple Intelligence. This strategy is projected to increase the share of entry-level models in Apple’s portfolio from single digits in 2022 to 10 percent by 2025. Expanding the base of AI-capable iPhones is also expected to boost Apple’s service revenue and benefit third-party service providers and the AI developer community.
Le Xuan Chiew, an analyst at Omdia, highlights the strategic importance of the iPhone SE in markets like Southeast Asia and Latin America, where cost-conscious consumers seek budget-friendly options. The more affordable price point is anticipated to attract second-hand iPhone buyers and owners of older models looking to upgrade.
Additionally, an earlier launch this year aims to capitalize on promotional opportunities targeting students before March, setting the stage for a strong back-to-school season. Omdia forecasts a 1 percent growth in global iPhone shipments, with the refreshed iPhone SE playing a crucial role in this increase. Its affordability is particularly valuable in telecommunications channels, especially in emerging markets where Apple aims to expand. The iPhone SE facilitates carrier promotions and offers a cost-effective option for entry-level contract plans.
From Canalys’s perspective, the iPhone SE addresses untapped potential in the 4-inch premium segment across various countries. Rushabh Doshi of Canalys notes that while the pricing is lower than larger iPhone models, it appeals to price-conscious consumers aspiring to own a premium brand. However, in markets like India, where the price carries a significant premium over U.S. pricing, consumers may wait for price reductions before purchasing.
The iPhone SE is expected to compete with resold iPhone 6 and 6S models, given Apple’s strong resale market in price-sensitive regions. Despite these challenges, the iPhone SE is seen as a strategic move to expand Apple’s market share in emerging markets, offering consumers a device with the latest technology at a more accessible price point.
Omdia and Canalys recognize the iPhone SE as a pivotal element in Apple’s strategy to broaden its market presence, particularly in emerging economies. The device’s enhanced features and competitive pricing are designed to attract new users and encourage upgrades among existing customers, thereby strengthening Apple’s ecosystem and market share.
Baburajan Kizhakedath
