New Apple leaks suggest that Apple is canceling its iPhone SE, which has been a popular iPhone given its affordable price. For weeks, there have been rumors about a new iPhone SE 2, but it seems that plans are being scrapped. The news comes a week after iPhone X is reportedly getting canceled too due to slow sales.
Second-generation iPhone SE scrapped
KGI Securities analyst Ming-Chi Kuo said in a research note that there are doubts that a second-generation iPhone SE will come out, MacRumors reports. There were anticipations that its launch would happen in the second quarter of this year.
According to Kuo, the tech giant does not have enough resources to produce another iPhone now that it has three iPhone flagship models already in the pipeline. The shortage of resources somehow explains the delay in the release of iPhone X, not to mention that the device has the most complicated design. Kuo believes that Apple only has enough resources to deliver the three new iPhone models in the second half of 2018. It would not risk having the same delays in their launch like what happened last year.
If Apple decides to continue the rumored iPhone SE 2, Kuo predicts it would not have significant changes from its predecessor. The most it can have is a faster processing and lower price, he added. Although, rumors said that the iPhone SE 2 will have a wireless charging, an iPhone X-inspired display, an LCD display, and a single rear camera.
Apple has not made a significant upgrade to the current iPhone SE since it was released in March 2016. So far, it only dropped the price to $349 and added a 64GB and 128GB storage capacities to the options.
Apple Loop: Significant iPhone X Cancellations, MacBook's Chip Gamble, Apple Hides Painful Quarter – This week’s Apple Loop includes Apple’s quarterly results, more iPhone X cancellation details, saying goodbye to the iPhone SE, Apple’s latest battery… https://t.co/6Eu4RK1bUk
— Raj (@RajSimplySaid) February 3, 2018
Apple expects iPhone X to struggle in 2018
When Apple released its quarterly results this week, the company revealed it hit a record revenue and earnings. This was largely driven by strong sales of iPhone X and its high price tag. Apple CEO Tim Cook said iPhone X has exceeded their expectations and has been the top-selling iPhone since November. However, given the underperformance of iPhone 8 and iPhone 8 Plus and the overall drop in the iPhone sales, Apple is expecting iPhone X to struggle this year. Moreover, the tech giant has cut its iPhone X production for the first quarter by 50 percent.
“Even though Apple’s cut is expected, that cut will have featured in the estimates of all of the suppliers. This isn’t the expected drop that was already factored in by the suppliers who understand and manage their tight margins, this is a cut in excess of the expected drop,” Forbes contributor Ewan Spence wrote.