[RUMOR] iPhone SE will not see upgrades in favor of maintaining margins

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Low-cost iPhone’s have been something we’ve talked about and Apple has dabbled in but it seems they haven’t really stuck. The iPhone 5C was a pretty horrible phone with a forgettable plastic build. Then the iPhone SE came along and was actually decently received in both its build quality and performance. Now, if rumors are true, Apple may be letting the iPhone SE take a few steps back when it comes to internal tech. According to KGI Securities analyst Ming-Chi Kuo, who is widely respected as a reputable Apple rumor source, Apple will not be refreshing the iPhone SE line. Kuo believes Apple is making this move in order to maintain its high margins on its flagship phones the iPhone 7 and iPhone 7 Plus.

Kuo forecasts that total shipment volume of iPhones will decline in the first half of 2017 due to tepid demand in China, slow shipment volume of 4.7-inch iPhones and the lack of an iPhone SE refresh in the second quarter of the year. Kuo argues that shipment volume came in higher in the first half of 2016 due to “upbeat demand for the iPhone SE.” Instead, Kuo believes Apple will exert pressure on its iPhone component makers to drop prices in an effort to maintain its margins. He expects suppliers to begin price reductions on components in either November or December of this year.

While Apple is going to try and get their suppliers to bring prices down on their components, it probably won’t work for all of their suppliers. Apple still relies on Samsung as one of their suppliers and it’s unlikely larger companies like Samsung will bend to Apple’s price drop demand. Calling the death of the iPhone SE might be premature, this sounds as if Apple is simply choosing not to invest new components into the “budget” device and continue to sell it until they deem it worthy of an upgrade. While it’s clear that Android is the most widely used mobile OS on the planet, it’s also clear that Apple makes the most profit from their devices and now we know why.

What do you think of the iPhone SE? Do you think Apple will continue to make it or let it fade away? Do you think they’re just choosing to skip one year of upgrade and redesign? Let us know your thoughts and comments below or on Twitter, Facebook and Google+.

[button link=”http://www.macrumors.com/2016/11/05/iphone-se-unlikely-in-early-2017/” icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]Source: MacRumors[/button]

Last Updated on January 23, 2017.

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