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A cheap new iPhone could hit Android sales hard

But, as we know, Apple doesn't like selling cheap devices.

We all know that there's an updated version of the iPhone SE in the pipeline, but 91mobiles.com has received some information on that upcoming release.

First off, it seems that Apple has three versions of the new budget handset: A2595, A2783, and A2784. This could mean that the budget handset may see a price drop. 

Yes, you read that right.

But it could also go the other way.

While the site is quite vague on other information -- the new handset might look like the current iPhone SE, or might look like the iPhone XR, and might use either the A14 Bionic or the newer A15 Bionic processor -- the three models listed feel legit.

So, why three?

Well, an obvious differentiator is 4G and 5G. Apple could sell a 4G version for the existing price, and a higher-priced 5G version for buyers who might want to future-proof their purchase.

Adding some differentiation beyond storage would allow Apple to offer the new iPhone SE 3 at different price points.

Now, usually I'd expect those price points to be higher price points. The 4G version being priced like the existing model, and the 5G version being more expensive. 

But what if Apple wants to go after the cheaper end of the Android market? Particularly in developing markets. Could Apple offer that 4G version for a lot cheaper?

The report does offer a vague price -- around $300 -- which to me suggests one of two things:

  • That price is very, very wrong.
  • Apple is going to drop the price of the iPhone SE to a place that would be a real threat to budget Android manufacturers.

The 64GB iPhone SE is currently priced at $399, so to offer a $300 iPhone SE, it feels like Apple would need to either shave off some serious costs off the handset or take a big hit in terms of margins on sales.

But it might be worth it to attract more Android users into the Apple ecosystem and get them spending money on Apple services.

What do you think? Would a $300 iPhone shake things up, or is the appeal of a budget iPhone limited?

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