Apple Misses Opportunity to Attract More iPhone Users

In the latest edition of his newsletter, Power On, Apple insider Mark Gurman highlighted that the inventory for the iPhone SE is depleting. This indicates that a new, redesigned iPhone SE is on the horizon, but it also suggests that Apple is overlooking a straightforward opportunity to attract more users.

Gurman further pointed out that Apple has no plans to continue selling the outgoing iPhone SE model at a discounted price. Historically, the company has discontinued older products as soon as a new version is released, yet this situation presents a prime chance to capture new iOS users.

The forthcoming iPhone SE 4—or iPhone 16E, according to various reports—is expected to be priced higher than its predecessor. While this price increase can be justified due to the more modern features of the new iPhone SE, retaining the older model at a lower price could have appealed to some Android users who are undecided. Last year, Apple launched the Vision Pro, its premium XR (Extended Reality) headset, which retails for $3,499 and even more in international markets.

However, production has reportedly ceased after it failed to meet sales expectations. Offering an iPhone model at a lower price point could not only have restored some goodwill for Apple but also improved its market share in developing regions.

Advertisement

Markets outside of wealthier nations often prefer budget-friendly Chinese smartphones. Although the iPhone is viewed as a status symbol in these regions, introducing a more affordable model could have allowed Apple to attract more iOS users and familiarize additional consumers with its ecosystem.

Advertisement

The new iPhone SE is expected to be designed with the body of the iPhone 14, which means it will feature an edge-to-edge display and a notch. Additionally, it will come equipped with 8 GB of RAM to support Apple Intelligence.

While these enhancements are certainly appreciated, the previous model is still a capable phone by any measure. I believe Apple could have continued to leverage it for a few more years as the most cost-effective option for transitioning to iOS.