In a couple of weeks, Apple is expected to launch a refreshed variant of the iPhone SE, with previous reports claiming that the company will name it the ‘iPhone SE 5G.’ Shortly after its launch, there are many steps Apple can take with the current low-cost model, with one reporter suggesting that instead of discontinuing it, the 2020 model’s price should be reduced to $199. This decision would make it the most affordable iPhone in Apple’s lineup and also transform it into a price-to-performance king.

Undoubtedly, the 2020 iPhone SE Would Be Incredibly Popular Than It Already Is in Developing Markets; Customers Can Play Slightly Extra for New Model for Upgraded Internals, 5G

As we move closer to the month of March, Bloomberg’s Mark Gurman talks in his Power On newsletter on how Apple should bring the price of the 2020 iPhone SE down to $199 from $399. With the upcoming iPhone SE 5G expected to take up the position as the new low-cost option, the 2020 version will not be viewed as a device oozing with value, not with its current price anyway. Gurman suggests a price cut and outlines his reasons for this move below.

“I suggest Apple continue to sell the older iPhone SE at a new, lower price—namely, $199.

Third-party resellers are already distributing the current iPhone SE at under $200, and refurbished models are plentiful. If Apple offers its own $199 device, the company could have a hot seller in developing markets. It would also provide an option to shoppers who don’t care about 5G service—and aren’t interested in a $1,000 iPhone 13.

By expanding its user base with a $199 iPhone, Apple could create more long-term services revenue and add people to its ecosystem. Those people may then be more willing to try AirPods, an Apple Watch or—later on—a higher-end iPhone.

The move would also give Apple an easy answer to its iPod touch conundrum. Over the years, the iPod touch has been a popular alternative to an iPhone—and Apple still sells the device, its last remaining iPod—but the product hasn’t been updated since 2019. The current model has an outdated 4-inch screen and a slow A10 chip from 2016.”

The iPhone SE 5G is said to ship with the A15 Bionic, the same SoC powering the iPhone 13 series, and it will be the most affordable iPhone to get 5G support. Customers who want to experience the upgraded internals paired with lightning-fast 5G connectivity can pay the premium, though if it launches for $399 just like the previous generation, it will not be considered a hefty sum.

What it will do is enable customers to get accustomed to Apple’s mobile software, and by extension, the company’s ecosystem, assuming they are willing to invest their money in additional Apple products. The expected launch date of the iPhone SE 5G is March 8. It is at this time that Apple is also said to announce the iPad Air 5, so plenty of products are expected to arrive next month.