Apple’s Budget iPhone SE May Get AI Upgrade in 2025

The next big leap: Apple’s budget-friendly iPhone SE is poised for a significant upgrade, potentially incorporating Apple Intelligence features and a modern design, which could reshape the company’s smartphone strategy.

• Bloomberg’s Mark Gurman reports that the next iPhone SE, expected as early as 2025, is likely to include Apple Intelligence features.
• This development would mark a significant shift for the SE line, which has traditionally offered older designs with updated internals at a lower price point.

Design evolution: The upcoming iPhone SE is rumored to adopt a more contemporary appearance, moving away from its traditional recycled design approach.

• The new model is expected to use the iPhone 14’s chassis, abandoning the dated iPhone 8-style design with its prominent forehead, chin, and home button.
• Rumors suggest the device may feature a 6.1-inch OLED screen, bringing it closer to Apple’s flagship models in terms of display technology.

Performance implications: The inclusion of Apple Intelligence features in the SE model hints at a substantial boost in processing power.

• Current Apple Intelligence features are exclusive to the iPhone 15 Pro, indicating that they require significant computational capabilities.
• The fact that these features can’t run on the standard iPhone 15 due to insufficient power suggests that the next SE will be notably more powerful than its predecessors.

Market positioning: This potential upgrade could blur the lines between Apple’s budget and premium offerings, potentially altering consumer choices.

• If the next SE combines a modern design, powerful performance, and AI capabilities at a lower price point, it may become a more compelling option for a broader range of consumers.
• The device could potentially cannibalize sales of higher-end models if consumers find its feature set sufficient for their needs.

Competitive landscape: The upgraded SE could strengthen Apple’s position in the mid-range smartphone market.

• By offering advanced AI features in a more affordable device, Apple could challenge competitors in the mid-range segment who may not have comparable AI capabilities.
• This move could also help Apple capture a larger share of price-sensitive markets where its flagship models may be out of reach for many consumers.

Potential limitations: Despite the upgrades, the SE is likely to maintain some distinctions from higher-end models.

• The iPhone 16 line is expected to retain advantages such as dual cameras and the action button from the iPhone 15 Pro.
• These differentiating features may still provide incentives for some consumers to opt for more expensive models.

Consumer impact: The potential changes to the iPhone SE could significantly influence purchasing decisions.

• If the next SE offers a modern design and advanced AI features at a lower price point, it may become a more attractive option for budget-conscious consumers.
• The value proposition of higher-end iPhones may be challenged if consumers find the SE’s feature set sufficient for their needs.

Broader implications for Apple’s strategy: This move could signal a shift in Apple’s approach to its iPhone lineup and AI integration.

• By potentially bringing AI features to its most affordable iPhone, Apple may be aiming to democratize access to advanced smartphone capabilities.
• This strategy could help Apple maintain its competitive edge in the increasingly AI-focused smartphone market while also expanding its user base.