At its first product event of the year on Tuesday, Apple unveiled an upgraded iPad Air, a new desktop computer and a powerful new Mac chip. But the standout product was a new budget iPhone with access to 5G networks.
Apple’s new iPhone SE, only the third version since the model launched in 2017, runs on the company’s faster A15 Bionic chip, the same in-house processor that drives the iPhone 13 line. It also features an updated camera and a longer-lasting battery, packed into the same 4.7-inch display as the previous model.
But it’s the added 5G capability that could be the ultimate draw for customers, by giving them access to the faster wireless network at a more affordable price point. However, the bump up to 5G comes with a price change. The device will cost $429 — $30 more than the previous model.
When Apple released its second version of the iPhone SE in April 2020, the budget smartphone seemed well-suited for the moment. The global pandemic was in its early days. Millions of households were grappling with job loss and financial uncertainty. And consumers were largely stuck at home, with less use for some of the bells and whistles that come with higher-end smartphones.
“Consumers were uncertain about the outlook and an affordable iPhone was ideally placed to take advantage of that,” said Ben Wood, an analyst with market research firm CCS Insight. “In 2022 things have improved but the iPhone SE franchise still fills an important role as an affordable iPhone for consumers still cautious about splashing out on a top-of-the-line iPhone or who just don’t feel the need to spend more than is necessary.”
For Apple, the new SE offers the promise to further boost demand for its core smartphone business by luring away Android users and convincing more iPhone owners to upgrade. In January, Apple reported record revenue during the all-important holiday quarter fueled in part by demand for its latest lineup of iPhones.
