A top analyst has claimed that Apple has plans to release a cheaper phone by early next year. The new release will also be smaller than, but just as powerful as the new iPhone 11.
Apple recently announced and later released its new range of products including the iPhone 11 series. These products, especially when they are newly released, are usually priced considerably high, even though said prices may not necessarily quell what is now recognized as a persistent public hunger for the company’s new products. However, one of the industry’s top analysts has said that Apple will launch a much cheaper version, which should be publicly available sometime in the first quarter of next year.
According to Ming-Chi Kuo, an analyst with TF International Securities, the new phone will be called the iPhone SE2 and is expected to also feature the A13 chip as available in the iPhone 11 In addition, the phone will be quite similar to the iPhone 8 which was released in September 2017. If this pans out, the iPhone SE2 will also have a 4.7-inch screen.
Kuo, who is quite known for making spot-on predictions on general Apple products, has also said that the new phone will be very key for Apple’s progress for next year.
“[The] iPhone SE2, which will be the best upgrade choice for existing 100 million iPhone 6 series users, will be a key growth driver for Apple in 2020.”
Back in March 2016, Apple released the iPhone SE (Special Edition), a phone which contains the same iPhone power, but smaller and a lot more affordable. With a 4-inch screen, the Apple strategy was to satisfy users who wanted a piece of the pie but didn’t have to pay top dollar for it. The iPhone SE has since been discontinued and the iPhone SE2 is expected to satisfy the same market. This, According to Kuo, will “meet more users’ demand and increase iPhone’s market share because of the more affordable price.”
As should be expected, the iPhone SE2 will have a few cutbacks to make it more affordable. It is however still expected to pack the same power and processing speed. Kuo notes that:
“All Apple content and service could run smoothly on iPhone SE2, and it will benefit the growth of Apple’s content and service businesses thanks to the adoption of the A13 processor and 3GB LPDDR4X. Though most of iPhone SE2’s hardware spec will be similar to iPhone 8’s, we think the excellent computing power offered by A13 and 3GB LPDDR4X, and the more affordable price will be great selling points. Therefore, we estimate iPhone SE2 shipments in 2020 will reach 30-40 million units.”
The iPhone SE, at the time it was released, was priced at $399 and was quite similar to the iPhone 5. Even though there’s still no official word from Apple, Kuo believes that since the iPhone 8 is still going for $449, the iPhone SE2 should be available for the same $399, assuming iPhone maintains the same pricing formula of a $50 reduction.
At the time of writing, AAPL stock is at $227.01, decreasing 0.22% from it’s $220.82 previous close with a 2.2% increase over the last 12 months.