Apple Launches Cheaper Version Of IPhone To Reach Wider Market

IPhone SE 4 offers a significant improvement in AI design, performance and features (photo: x @jeps2009)

JAKARTA - Apple launched a more affordable version of the iPhone on Wednesday 19 February in an effort to expand its market share in the middle class smartphone segment and compete with other manufacturers such as Samsung and Huawei from China.

The fourth generation of low-cost models known as the iPhone SE will challenge the popularity of Android smartphones, especially amid the trend of electronics manufacturers starting to integrate artificial intelligence (AI) features into their devices.

Currently, the previous generation of iPhone SE released in 2022 is sold for $429, and the latest version is expected to be priced higher than its predecessor. Meanwhile, the iPhone 16 launched in September 2024 has prices ranging from 799 US dollars (Rp 13 million) for the basic variant.

"If the iPhone SE 4 offers a significant improvement in AI design, performance, and features, it has the potential to increase its attractiveness in the market and strengthen Apple's position in various price segments," said senior Counterpoint Research analyst Varun

Apple previously forecasts strong sales growth, indicating recovery from the decline in iPhone sales after the company began bringing artificial intelligence features to more areas and in multiple languages in the coming months.

However, analysts remain cautious in forecasting the impact of increased sales driven by the AI feature, given that Apple will be releasing this technology in stages in some areas, particularly for the latest iPhone 16 and iPhone 15 Pro lines.

According to a Counterpoint Research report, the contribution of the SE model to iPhone's total revenue has decreased, from 10% in its 2016 launch year to around 1% last year.

This year's update is expected to bring a new design without Home physical buttons, as well as a Face ID feature recognition. Additionally, the device will also get upgrades to the camera and processor to support AI features, according to reports from analysts and the media.

In addition, the latest iPhone SE will be the last model of the iPhone line to adopt a USB Type-C charging port, replacing Apple's signature Lightning connector.

Apple has previously stopped selling current SE models and the iPhone 14 in the European Union for not meeting local regulations requiring charging standards using USB Type-C. With the presence of the latest SE, Apple can re-enter the EU market.