Apple plans to launch new budget iPhone

Apple iPhone SE

The new iPhone model would be the first low-priced iPhone developed since the iPhone SE in 2016, which cost approximately $399 at launch.

Apple is readying to breathe life back into its low-priced iPhone line, according to a new report which claims an all-new 4.7-inch model will debut in 2020.

The name and price of the new iPhone model has not been decided but many believe it to be the successor to the iPhone SE. A new Apple TV with a faster chip would, therefore, not be surprising, as the device has been updated once every two years for three generations.

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On top of that, there's also the fact that Apple has been expanding outside of its own hardware ecosystem, bringing many of its video features to smart TVs and even competing set-top boxes. So releasing the iPhone SE 2 makes sense - in essence, to catch the lowest-cost rung of Apple phone customers before they're aged out of new iOS versions. The decision to release to low-priced iPhone is not surprising given the fact that iPhone sales is declining year over year. The original iPhone SE sold about 30 million units in 2016 and another 10 million between 2017 and 2018, according to Yuanta Investment Consulting.

To combat sluggish market performance this year, Apple cut prices for its premium handsets in developing markets, which was somewhat effective: discounting the iPhone XR increased sales by 20 million in China, though Apple sales suffered an overall shortfall in the region. Apple projected the iPhone SE as an affordable smartphone starting at $399.

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