Apple will introduce a new, less expensive iPhone in an effort to reach a wider customers

Apple (AAPL.O), opens new tab is scheduled to release its newest low-cost iPhone model on Wednesday in an effort to increase its market dominance in the mid-range smartphone space and stave off competition from rivals like China’s Huawei and Samsung (005930.KS).

The fourth generation of the less expensive model, now referred to as the iPhone SE, will compete with well-known Android handsets at a time when manufacturers of consumer electronics are trying to incorporate AI capabilities into their products.

The price of the most recent iPhone SE model is probably more than that of the current iteration, which was released in 2022 and costs $429. The base model of the iPhone 16 costs $799 and was released in September.

According to Varun Mishra, a senior analyst at Counterpoint Research, “Apple’s market appeal could be revitalized and its position across various price segments strengthened if the SE 4 offers significant improvements in design, performance, and AI features.”

As it expands the use of artificial intelligence features to other areas and languages in the upcoming months, Apple predicted robust sales growth late last month, indicating that the business will bounce back from a decline in iPhone sales.

Analysts have been wary of the potential sales bump that these technologies could offer, though, because Apple’s AI features are scheduled to be phased in in some markets for the iPhone 15 Pro model and its most recent iPhone 16 lineup.

Counterpoint Research reports that since its launch in 2016, the SE model’s sales as a percentage of overall iPhone revenue have decreased from 10% to roughly 1% last year.

According to experts and media reports, this year’s version is anticipated to improve its slab-design, do away with the physical home button, and add FaceID in addition to camera and processing upgrades to support AI functions.

In contrast to its exclusive Lightning connector, the SE model would be the last iPhone to use the USB Type-C port for charging.

Because the SE and iPhone 14 do not meet local regulations mandating USB Type-C charging, Apple has already discontinued them in the EU. It could return to the EU under the most recent SE model.