Based on current information, there's bad news and good news. The bad news is that it seems that an updated 3rd-gen iPhone SE won't be released until 2022. The good news is that it should be released early 2022.
Why is Apple obsessed with bigger iPhones?
The data suggests that it is what consumers want. Pretty much every sales metric I've seen for this year's line of iPhones suggests that the 6.1-inch iPhone 12 Pro and 6.7-inch iPhone 12 Pro Max saw strong sales, while sales of the 5.4-inch iPhone 12 mini were lackluster.
Perhaps the poor sales were to do with the "mini" in the name, or maybe people nowadays do just want bigger phones.
Whatever the reason, if you want a smaller phone at a more budget price, you may well want to wait for the new iPhone SE to emerge.
What are your thoughts on smaller phones? Still needed, or too old-school?