Apple may cancel iPhone SE 4 production due to lack of demand: Kuo

Apple may seemingly shelve its affordable iPhone lineup, at least for the time being. According to noted market analyst Ming-Chi Kuo, a lack of demand for low-end iPhone options, coupled with the present economic conditions, could see Apple at least postpone or even cancel its plans to make the iPhone SE 4 — which was so far expected to be launching in 2024 as the new version of Apple’s least expensive new iPhone lineup.

Kuo, in a thread of tweets, said on Wednesday, “Apple will likely cancel or postpone the mass production plan for the 2024 iPhone SE 4. I think this is due to the consistently lower-than-expected shipments of mid-to-low-end iPhones (e.g., SE 3, 13 mini, and 14 Plus), as well as concerns that the full-screen design of the SE 4 will lead to an increase in higher costs/selling prices. As a result, Apple may need to reconsider the product positioning and return on investment for the SE 4.”

Kuo’s projection is based on his survey of the global consumer electronics supply chain, the analyst said. He further added that a key factor behind this could be to reduce “unnecessary new product development expenses” in order to “navigate the challenges of the global economic recession in 2023.”

Apple’s reported reshuffling of plans comes at a time when the global demand for consumer electronics remains tepid at best. Markets with typically high demand, such as India, have so far seen a series of flat quarters — including a weak festive period — as threats such as inflation, lack of availability of budget devices due to existing supply chain disruptions, and cautious discretionary consumer spending in electronics have led to a drop in smartphone sales.

For Apple, while its overall performance has remained resilient, sales in markets such as India have seen a rise through the past one year. However, industry experts have so far said that the company is unlikely to see exponential growth in a market like India every year, especially since it functions at a high price bracket — which is a niche segment for India.

As Kuo explained, Apple’s plans for phones beyond its bestsellers, which include standard models such as the iPhone 13 or iPhone 14, as well as the basic variants of the ‘Pro’ models, could now be postponed or adjusted in line with market conditions.