Opinion: as Apple prepares to launch an iPhone SE 5G, the company should keep selling the older iPhone SE model and bring its price down to $199
Apple is planning to unveil a 5G iPhone SE in March—but the big news could be a price drop for the current model.
Context & Ripple Effects
Apple created the iPhone SE as a lower-cost, compact model in 2016, when the original 4-inch SE launched at $399. Reporting earlier this month said the company was preparing a 5G-capable SE alongside a faster, 5G iPad Air.
The proposed $199 price for the existing model would turn the outgoing SE into a distinct entry tier rather than simply replacing it with the new device.
First-order effects
- Apple would have two sharply differentiated SE price points: a new 5G model and a $199 older model for buyers prioritizing upfront cost.
- The older iPhone SE would remain an active sales option instead of being immediately retired after the 5G model’s introduction.
Second-order effects
- A $199 iPhone would put direct price pressure on Android vendors competing for budget-conscious buyers, while Apple would need to manage the risk that the cheaper SE diverts demand from the 5G version.
- Carriers and retailers would gain a lower-priced Apple handset to use in entry-level offers, while the new model would carry the 5G upgrade proposition.
Third-order effects
- Keeping prior-generation hardware in the lineup would formalize a multi-tier iPhone strategy in which connectivity and newer components justify step-up pricing rather than replacing the low end outright.
- The SE line would increasingly serve as Apple’s mechanism for extending its handset ecosystem to lower upfront-price segments while preserving a premium path for newer technology.
The trend: Apple’s planned 5G SE points to product-line segmentation in which older iPhones remain a lower-cost on-ramp while newer connectivity anchors upgrades.