Apple is gearing up to release a new version of its budget-friendly iPhone SE on Wednesday, aiming to capture a larger share of the mid-range smartphone market. The move comes as the tech giant faces increasing competition from rivals like Samsung and Huawei.

The upcoming iPhone SE 4, the fourth-generation model in the SE lineup, is expected to take on popular Android devices at a time when smartphone makers are integrating artificial intelligence (AI) into their products.

Pricing and Market Positioning

The current iPhone SE, launched in 2022, is priced at $429. While Apple hasn’t confirmed the exact price for the new model, industry analysts expect it to cost slightly more due to anticipated upgrades. For comparison, Apple’s latest flagship, the iPhone 16, starts at $799.

"If the SE 4 offers meaningful upgrades in design, performance, and AI features, it could reinvigorate its market appeal and strengthen Apple's position across different price segments," said Varun Mishra, a senior analyst at Counterpoint Research.

Apple recently forecasted strong sales growth, signaling a potential rebound from declining iPhone sales. The company is betting big on AI-powered features, which it plans to roll out across more regions and languages in the coming months.

What to Expect from the iPhone SE 4

While Apple has yet to reveal official details, reports suggest the new SE model will undergo a major design overhaul. Expected changes include:

• A modern, all-screen design with no physical home button
• Face ID for biometric authentication
• Improved camera and processor to support AI-powered features

This would mark a significant shift for the SE series, which has traditionally featured older designs with Touch ID.

USB-C and EU Compliance

Another notable change is the transition to USB Type-C charging, making the SE 4 the last iPhone model to adopt the universal port. Apple was forced to discontinue the current SE and iPhone 14 in the European Union due to new regulations requiring USB-C charging. The new SE model will allow Apple to re-enter the EU market with a compliant budget device.

The SE's Declining Market Share

Despite its affordability, the iPhone SE has seen a steady decline in its contribution to Apple’s overall iPhone sales. When it was first introduced in 2016, SE models accounted for around 10% of total iPhone sales. By last year, that figure had dropped to just 1%, according to Counterpoint Research.

With this latest update, Apple hopes to breathe new life into its budget lineup while attracting a broader audience looking for an affordable iPhone with modern features.

Apple is expected to reveal full details of the iPhone SE 4 at its upcoming launch event.