After a lackluster iPhone SE 2022, Apple will launch a new model in 2025 confirming the renewal frequency of 3 years. This “entry-level” iPhone will have to evolve on many points to finally become attractive to the public. Gone is the dated design, the barely adequate screen and the impasse on the latest features… but how can we make the iPhone SE coexist with more expensive models without risking cannibalizing the range?
Design and performance worthy of a modern iPhone
With the iPhone SE 4, Apple will have to achieve a feat: offering a resolutely modern and efficient device, without cannibalizing the sales of its more high-end models. A perilous balancing act, which will require making judicious strategic choices.
On the design side, it is time for the iPhone SE to say goodbye to its aging look inherited from the iPhone 8. The adoption of a chassis with more current lines, close to the latest iPhones, seems essential. But Apple will have to be careful not to overdo it. Many questions arise. Should we integrate Dynamic Island? Should the OLED screen be as bright and tech-rich as other iPhones? Can we imagine a plastic shell like on a future Watch SE? If the iPhone SE 2025 looks too much like an iPhone 16, it will start to be difficult to justify purchasing the latter.
The integration of technologies such as 5G or Face ID, however, seems inevitable to modernize the device. Just like the improvement of the screen and the camera, two weak points of the iPhone SE 2022. But again, there is no question of going too far and getting closer to the characteristics of the higher models.
What about Apple Intelligence?
In terms of performance, it will undoubtedly be the A18 chip that will be chosen because Apple always integrates the latest SoC on the iPhone SE. Regarding RAM, the question is more complex than it seems. If the choice is made to equip the iPhone SE with 8 GB of RAM like the other models, then the A18 + 8 GB RAM combo is perfect for running Apple Intelligence. In this case, the iPhone SE would come even closer to the iPhones 16 and would be equipped with Apple’s AI which is the major novelty of the year. Cupertino always has the choice of only putting 6 GB of RAM to make this device, in fact, incompatible with Intelligence. Apple could create artificial segmentation by not integrating all AI features to differentiate with superior models. The decision whether or not to integrate Apple Intelligence is central to Cupertino’s strategy and will be closely scrutinized in the months to come.
It is therefore on a crest line that Apple will have to move forward to make its iPhone SE 4 a success. Offer enough new products to appeal to a demanding audience, without devaluing the rest of its range. A major strategic challenge, which will require learning from past mistakes. Because if the iPhone SE 2022 did not convince, it is above all because of its shaky positioning, too far from the expectations of the time.
Finding your place in the range without cannibalizing sales
Apple’s biggest challenge with the iPhone SE 4 will be to find a relevant positioning within its range. It will have to stand out sufficiently from more high-end models so as not to encroach on their flowerbeds, while offering enough new features to attract buyers.
One way to achieve this would be to focus on compactness. While all recent iPhones feature generous screens of 6.1 inches or more, the iPhone SE 4 could stand out by adopting a more contained diagonal, around 5.5 inches. Enough to please diehards of small smartphones, nostalgic for the format of the iPhone 6 or the iPhones 12/13 Mini which were a failure. At Apple, we know that small size means lower price (apart from the iPad Mini).
Play on details
There is no doubt that the iPhone SE 4 will only have one camera and no Wi-Fi 7 for example. It is on these kinds of details – which for some are not details – that Apple will make concessions. But will it be tangible enough for the general public?
Apple could also choose to voluntarily restrict certain features on its iPhone SE, to maintain a clear hierarchy with the rest of the range. MagSafe support is clearly in question, as well as secondary features like the UWB chip allowing centimeter-level location of AirTags. Bluetooth version, charging and transfer speed of the USB-C port, finishes… Cupertino will feel obliged to do some pranks savings to maintain margins.
But the good news is that customers should benefit from the brand’s first 5G modem, with a component capable of handling networking, Wi-Fi, Bluetooth and more.
Again and again the question of price
Because this is the heart of the problem: to convince with its iPhone SE 4, Apple will absolutely have to cut prices. An aggressive price below €500 seems essential to make this device an attractive entry point into the brand’s ecosystem. Even if it means reducing margins, as Apple has already done in the past with the iPhone 11 or Xr.
This offensive pricing strategy could allow the iPhone SE 4 to win over new customers, particularly among young people or in emerging countries. Buyers who, once seduced by the Apple experience, could ultimately migrate to more high-end and more profitable models for the Cupertino company. Also, we must not forget that the iPhone SE is massively purchased in companies to equip employees and Apple will also have to pay attention to this audience.
But to achieve this, Apple will have to pull off a perilous balancing act. Offer an iPhone SE 4 that is sufficiently premium not to tarnish the brand image, while remaining affordable so as not to cannibalize the rest of the range. A major strategic challenge, which will require a clear vision and flawless execution. See you in 2025 to see if Tim Cook and his teams have succeeded in their bet.
