Apple's Midrange Challenge: Can the Next iPhone SE Compete?

Apple has long been criticized for lacking a compelling midrange smartphone compared to the options in the Android ecosystem. While debates continue around the merits of iOS versus Android, there’s no denying that Android offers impressive mid-tier devices that outshine Apple’s current offerings. The iPhone SE, first launched in 2016, initially appeared as an affordable yet powerful option, equipped with a then-modern A9 chip for $399. However, despite two updates, the SE’s appeal has waned over time.

The latest iteration of the SE, released in 2022, costs $429 and brings some attractive features, like good dust and water resistance, wireless charging, and a decent camera for daylight shots. But the phone’s drawbacks have become increasingly evident. The SE’s dated LCD panel, chunky bezels, and a small, 64GB base storage stand out as significant disadvantages. Worse still, the lack of a night mode for the camera makes it feel outdated, especially in a market where night photography has become standard even in midrange devices.

In 2020, the compromises seemed forgivable, especially at a starting price of $399. However, when the third-generation SE arrived with minimal improvements and a price hike, it became clear the device was lagging. The issue has become more glaring as competitors continue to raise the bar. The Google Pixel 8A, for example, offers impressive specs for $499, including a modern OLED display, an excellent camera system, 128GB of storage, and a seven-year OS support commitment. Even Samsung, despite skipping the U.S. market with some of its midrange models, provides alternatives like the Galaxy A35, which includes features such as an OLED screen and IP67 rating for only $399.

Rumors of an upcoming fourth-generation iPhone SE, expected in 2025, suggest that Apple may finally address these shortcomings. Speculations hint at an OLED screen, slimmer bezels, and increased processing power and RAM, along with a boost in base storage, likely to 128GB. Even with a potential price increase to $499, these updates could make the SE a more viable midrange option. Apple might streamline the SE by omitting features like the Action Button, Dynamic Island, and a secondary ultrawide camera, leaving a more efficient but affordable device that delivers the essentials.

The demand for a well-priced iPhone SE is underscored by sales trends in the U.S. Analyst firm CIRP reported that the average iPhone price in September 2024 reached $1,018. Many of these high-end sales are likely influenced by carrier deals and financing options, which make premium models seem more appealing when broken down into monthly payments. Consumers face limited affordable options, which nudges them toward pricier models, often only paying a marginal difference each month for a flagship phone.

Apple’s approach to value-focused products has shown promise in other areas, such as the M4-powered Mac Mini. The redesigned Mini, which starts at $599 and comes with 16GB of RAM, has been praised as a well-rounded, affordable desktop solution. Apple’s success in transforming the Mini into an appealing entry-level product raises hopes that the company will adopt a similar strategy for the next iPhone SE. A thoughtfully re-engineered SE could fill a significant gap in Apple’s lineup, meeting the needs of consumers who want a straightforward, reliable, and reasonably priced iPhone.