Apple iPhone SE 2017 model development and release highly unlikely

Apple will not release a new iPhone SE unit next year, according to insider analyst Ming-Chi Kuo of KGI Securities. The budget iPhone variant is a popular and capable alternative for Apple fans who refuse to dole out big bucks for premium variants like the iPhone 7 and iPhone Plus. But now it seems that Apple wants to go in a different direction come 2017.

According to Kuo, the tech giant will most probably pull the plug on the 4-inch iPhone SE next year to focus solely on the premium flagship follow-up, the iPhone 8. He said that Apple intends to keep up the high gross margins. iPhone SE fans expected that an updated unit would be announced by March next year since the smaller budget model sold rather well.

Kuo’s report on 9To5Mac indicates that Apple will not launch a new iPhone SE next year to “keep gross margin at a high level and to avoid cannibalisation of high-end models.” The analyst expects the overall sales of the current Apple smartphone variants to gradually go down due to consumer anticipation to the iPhone 8.

The forthcoming iPhone has already created a significant buzz due to rumours and leaks making rounds online recently. Kuo estimated the total iPhone shipment load to reach 40 to 50 million units in the first quarter of 2017, which is less compared to the 51.2 million of last year.

Apple has been pressuring small suppliers in an attempt to further cut down margins, according to Kuo’s report. The Cupertino-based company is not likely to move bigger suppliers, though, like Taiwan Semiconductor and Samsung.

The iPhone SE was launched by Apple back in March. The more affordable iPhone variant is more capable than it seems, possessing a number of iPhone 6S features and specs in its smaller 4-inch body like that of the iPhone 5s. The iPhone SE 16 GB model is currently priced at $679 at the Apple Store, while the 64 GB variant is available for $749.