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Apple plans to cancel the upcoming iPhone SE 4, according to a report originally published on Medium by reputable Apple analyst Ming-Chi Kuo. The production lineup will seemingly benefit the San Diego-based chip maker Qualcomm and their 5G RF baseband chips.
The iPhone SE 4 would have been the first device in which Apple was expected to experiment with its in-house 5G network communication chip. If the results are satisfactory, the company has plans to integrate the chips into its iPhone 16 lineup of smartphones.
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However, considering recent developments, the company might postpone integrating its in-house 5G chip with iPhones anytime soon.
More details on the iPhone SE 4 and why it got canceled
Initially, the iPhone SE 4 was supposed to launch in 2024 as Apple's next-gen budget smartphone. However, recent reports on the internet suggested that the company is considering canceling or postponing the device.
Apple made such a decision because of poor sales of the iPhone SE 3, the iPhone 13 Mini, and the iPhone 14 Plus. Lower-end iPhones have not been performing well, and the company thus wants to focus solely on improving the experience on high-end and cutting losses.
In his first report, in which the leaker was unsure whether Apple was considering killing the lineup, Kuo said:
“My latest survey indicates that Apple will likely cancel or postpone the mass production plan for the 2024 iPhone SE 4. I think this is due to the consistently lower-than-expected shipments of mid-to-low-end iPhones (e.g., SE 3, 13 mini, and 14 Plus)."
However, the latest updates confirm that the Cupertino-based company has nuked the budget smartphone lineup and is currently revising its strategy for the upcoming releases in the iPhone lineup.
The aftermath of Apple's decision to kill the iPhone SE lineup
According to Kuo, the biggest winner of Apple's decision is Qualcomm and its network interfaces. Qualcomm provides Apple with multiple chips that power various features of the iPhone. The company has prepared an X65 5G chip that powers the satellite communication feature of the iPhone.
Similarly, Qualcomm also powers the smartphone's network communications. However, that was expected to be soon enough as Apple is prepping its own 5G chip. As mentioned earlier, this chip would have debuted with the Apple iPhone SE 4.
However, since that is no longer happening, Qualcomm gets a significant boost in terms of sale volumes and profit margins.
Apple will be launching iPhone models with their in-house chips, however, that is not expected to happen for at least two more years. At this time, Qualcomm can comfortably increase its chip market share and performance, potentially even leaving Apple behind in terms of overall design and efficiency.
Conclusion
Overall, Apple's decision is a major blow to the budget smartphone industry. In the mid-range, Apple iPhone SE devices are a solid alternative to a segment dominated by Android smartphones.
However, that might change as soon as Apple discontinues the iPhone SE 3. With the departure of another low-end iPhone device, the lineup continues to get more simplified.
At this point, Apple might sell current-gen devices as higher-end options, with one-year-old iPhones as budget alternatives. However, these possibilities are the result of speculation. The Cupertino-based tech giant might have other plans for the future of its smartphone lineup.
