Apple's long-awaited overhaul of iPhone SE to release in few days

By Mark Gurman

 

Apple Inc. plans to unveil a long-anticipated overhaul of the iPhone SE in the coming days, a move that will modernize its lower-cost model in a bid to spur growth and entice consumers to switch from other brands. 

The company expects to announce the device as early as next week, ahead of it going on sale later in the month, according to people with knowledge of the matter. Apple is unlikely to hold a launch event for the device, opting to reveal it on its website instead, said the people, who asked not to be identified because the plans are private.

 

The debut will mark a major shift for an oft-overlooked smartphone, which Apple first introduced in 2016 as an entry-level model. The existing version — released in 2022 — has grown dated: It’s the only iPhone that still has a home button and lacks Face ID. The new version will look more like the iPhone 14 and also include Apple Intelligence, the company’s AI software. 

 

There are already telltale signs that the new phone is coming. Inventory of the current iPhone SE has dried up at Apple retail stores in many parts of the US, which typically happens before a refresh. 

 

Apple retail employees at several stores say that inventory has been dwindling for weeks and customers who want to buy the device in certain configurations sometimes need to be turned away.

 

The phone remains available for purchase on Apple’s online store but some configurations — including a red version with 256 gigabytes of storage — aren’t shipping until March. Stockpiles of the iPhone 14 and 14 Plus also are running low.

 

A spokesperson for Cupertino, California-based Apple declined to comment. 

Apple already discontinued the current SE and iPhone 14 in the EU because the products don’t comply with local laws requiring USB-C, a charging standard adopted by other iPhones in 2023. The next iPhone SE will get that same port, letting it return to the EU.

 

The current SE costs $429, which is hundreds less than the $799 regular iPhone 16. Given the new features and design of the updated model, Apple may increase that price. But it’s likely to remain in the same general range as entry-level smartphones from Samsung Electronics Co. and Alphabet Inc.’s Google.

 

Apple’s iPhone business could use a boost. Sales of the device declined 1 per cent during the holiday quarter — a worse performance than expected — and Apple is banking on the new low-end phone to help restore growth.

 

A new iPhone SE could be especially enticing in overseas markets like China, India and other parts of Asia, where Apple is trying to bolster its business. The combination of high-end features and a roughly $500 price point could make it an attractive alternative to local brands, even though it will likely remain more expensive. Apple’s sales fell 11 per cent in China last quarter but grew in other emerging markets.

 

The new device, code-named V59, also will be Apple’s first with an in-house cellular modem, replacing a component from Qualcomm Inc., Bloomberg News has reported. It will have a larger screen with Face ID and also include a speedier A18 chip, which will help support Apple Intelligence. The removal of the home button from the iPhone SE means that Apple will have fully phased out the iconic interface, which debuted on the first iPhone in 2007.

 

Apple is planning a broader shake-up to the iPhone lineup this year. The upcoming iPhone 17 and 17 Pro models will get major updates, and there will be a new ultrathin version — part of an industry shift to skinnier smartphones. 

 

The iPhone SE announcement will come around the same time as the unveiling of new PowerBeats Pro 2 earbuds. They’re expected to be introduced as early as Feb. 11, Bloomberg News has reported. The new earbuds will be the first from an Apple brand with a built-in heart rate monitor. That’s a feature the company ultimately wants to bring to AirPods. 

 

Other, non-iPhone products are coming soon as well. Apple is planning to launch a MacBook Air with the speedier M4 chip, fresh low-end iPads and updated iPad Air models during the first half of 2025. Inventory of the current iPad Air and MacBook Air has been dwindling at Apple retail stores. 

 

This year will also include major upgrades to the company’s pro-level desktops, as well as a smart home hub with a display.