Mobile tech giant Apple has announced a new version of its iPhone SE model to take advantage of the mid-range market.
Apple has announced a new version of its iPhone SE model, which it discontinued in 2018, to tap into the mid-range market.
The new iPhone SE looks similar to the 2017 iPhone 8 in form and has a 4.7-inch screen, and a fingerprint ID sensor but has no depth camera for facial recognition. It features the same processor as the flagship iPhone 11 but no multiple rear cameras.
The device is capable of wireless charging and its rear-facing camera's resolution is 12 megapixels. It can still create background blur in portrait photos, despite lacking a second lens while the selfie camera is 7 megapixels.
The new handset is priced similarly as the original iPhone SE in the US but will cost higher in other markets. The new iPhone SE can be availed for $399 in the US and £419 in the UK.
According to Dan Iver of Wedbush Securities, the availability of a mid-range phone could help Apple compete for new customers against rivals including Samsung and Google, which have a strong positioning in that particular market segment.
Iver said: "Once you buy an iPhone you are more likely to buy another one."
Impact of coronavirus
Apple warned in February that the coronavirus lockdown in China would affect the production of iPhones and pull down sales. Currently, physical stores selling mobile phones in various countries remain closed, including Apple's flagship stores.
However, Iver forecasts the iPhone SE to reach sales of between 20 million and 25 million units in the first six to nine months.
He argued: "Apple's hands are almost being forced to bring this out because from a supply chain perspective it was ready." He explained that while other brands have similarly priced models, "Apple is this golden brand".
Mobile analyst Carolina Milanesi of Creative Strategies also thinks that the brand appeal of Apple would help the company perform well in the price range.
Milanesi pointed out: "The second-hand market is pretty vibrant for Apple so are there users who have never have a new iPhone that will want one, and can afford it at this price."
However, she warned: "I think the phone has to have some compromises. It can't be too close to the iPhone 11 or a iPhone10R - or what is the point?"
Apple's new iPhone SE is scheduled to launch on April 24.
Settlement of class action suit from older iPhone owners
In early March, Apple announced that it will be paying up to $500 million to settle a class action lawsuit accusing it of slowing down older iPhones to force users to buy new ones.
Under the proposed settlement agreement, Apple will be required to pay owners of certain iPhones $25 per affected device, which can total to a minimum of $310 million and a maximum of $500 million.
In December 17, Apple admitted to using software updates to slow down older iPhones after customers and tech analysts were enraged by the diminished performance caused by the updates. Some of them suggested that the updates were aimed at forcing users to upgrade to the latest iPhone model.
However, the company argued that the updates for the iPhone 6, iPhone 6S, iPhone SE and iPhone 7 were aimed at addressing issues with older lithium-ion batteries that would make the phones suddenly shut down to protect their components.
