Ming-Chi Kuo: Apple to launch the iPhone SE 2 in Q1 2020 with an iPhone 8-like design and an A13 chip
Apple is set to launch the next version of the iPhone SE 2 in the first quarter of 2020, according to renowned Apple analyst Ming-Chi Kuo. The new phone will be more affordable …
Context & Ripple Effects
Ming-Chi Kuo's supply-chain note puts a new budget iPhone on Apple's calendar for Q1 2020, reusing the iPhone 8's design but pairing it with the A13 chip that powers the flagship lineup. A follow-up report a week later fleshed out the spec sheet: 3GB of RAM, 64GB and 128GB storage tiers, no 3D Touch, and a $399 starting price.
The SE 2 doesn't arrive alone — Kuo's same research places new iPad Pro models in Q1 2020 and an Apple AR headset built with third-party brands in Q2 2020, framing this as a broad early-2020 refresh. The budget tier also proved durable: two years later Kuo was tracking a 5G-equipped iPhone SE for H1 2022, confirming the low-cost line as a recurring product rather than a one-off.
First-order effects
- Buyers get flagship-class A13 performance at a $399 price point, collapsing the usual gap between Apple's chip tier and its price tier.
- The iPhone 8-derived design lets Apple keep bill-of-materials and tooling costs low, protecting margin on a device priced for volume.
Second-order effects
- Mid-range Android vendors face a sub-$400 device with Apple's silicon, forcing them to compete on features (cameras, displays, 5G) rather than raw chip performance.
- A cheaper entry point widens the top of Apple's install base, feeding the services and App Store businesses that monetize the ecosystem long after the hardware sale.
Third-order effects
- The SE line hardens into a standing budget tier with its own multi-year refresh cadence — the 2020 A13 model followed by a 5G successor — rather than an occasional experiment.
- Apple's product ladder settles into a structure where last-generation flagship silicon trickles down annually, making chip roadmap timing a pricing lever across the whole iPhone range.
The trend: Apple is converting its budget iPhone from a one-off experiment into a recurring tier, with flagship silicon trickling down on a predictable refresh cycle.