Will Apple Keep the Old iPhone SE Around at a Lower Cost?

Apple is rumored to be introducing an upgraded version of the iPhone SE as soon as March 8, the prospective date of the company's first event of 2022. The new ‌iPhone‌ SE is expected to be priced at $399 and it will be replacing the current ‌iPhone‌ SE, but will Apple keep the older model around and drop the price as it sometimes does when new iPhones come out?

iphone se 2020 top
In his most recent "Power On" newsletter, Bloomberg's Mark Gurman suggested that Apple could potentially keep the 2020 ‌iPhone‌ SE around, dropping the price to somewhere around $199. At this price point, Apple would be able to capture market share in places like Africa, India, and South America, where people gravitate toward lower-cost Android devices.

Apple has never had a sub-$200 ‌iPhone‌ before, with the entry-level $399 ‌iPhone‌ SE positioned as the cheapest ‌iPhone‌ that's been released to date, but as Gurman suggests, component costs are low enough that Apple might be willing to consider an even more affordable ‌iPhone‌ option.

Bill-of-material estimates from two years ago pegged the hardware cost of the iPhone SE at around $200, meaning a $199 price tag would be a money-loser. But time and economies of scale have probably made that cost much lower by now. Would the cost be low enough for Apple to earn its typical profit margins? No, but the chance to sell services and other products to big new markets could make up for that.

Most of Apple's focus is on its flagship devices, with Apple never seriously targeting the low-end smartphone market, but Apple is known for keeping older iPhones around and offering them at more affordable price points when introducing new devices. With the ‌iPhone‌ 13, for example, Apple dropped the price of the ‌iPhone‌ 12 and kept it around. 2019's ‌iPhone‌ 11 is also still available for purchase, and at $499, is Apple's most affordable device next to the ‌iPhone‌ SE.

Gurman argues that if Apple does end up keeping the old ‌iPhone‌ SE around and selling it for a ~$199 price point, Apple could see notable sales in developing markets and create long-term services revenue while growing the iOS ecosystem.

Such a device would also allow Apple to replace the long outdated iPod touch, which has gone several years without an update. The iPod touch has seen no updates since 2019 and is still using an A10 Fusion chip. Apple sells the 32GB iPod touch for $199, so a $199 ‌iPhone‌ SE would be a solid replacement.

Gurman has confirmed that there is no sign that Apple actually plans to keep the older ‌iPhone‌ SE around as a lower cost alternative, but it's clear there's incentive. Either way, Apple is poised to bring us a new ‌iPhone‌ SE that features the same general design but chip upgrades and 5G connectivity.

Well-respected Apple analyst Ming-Chi Kuo has said that the 2022 ‌iPhone‌ SE will be Apple's cheapest 5G iPhone to date, bringing faster connectivity to millions of people at an affordable price point.

Related Forum: iPhone

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
iPhone Car Key Kia

Here's Which Vehicles Offer iPhone Car Keys

Sunday July 6, 2025 3:03 pm PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. Apple has a web page with a list of vehicle models that ...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iphone 17 pro render majin bu

New iPhone 17 Pro Renders Highlight Apple Logo and MagSafe Design Changes

Sunday July 6, 2025 8:43 pm PDT by
New renders today provide the best look yet relocated Apple logo and redesigned MagSafe magnet array of the iPhone 17 Pro and iPhone 17 Pro Max. Image via Majin Bu. Several of the design changes coming to the iPhone 17 Pro model have been rumored for some time, such as the elongated camera bump that spans the full width of the device, with the LiDAR Scanner and flash moving to the right side. ...
Prime Day 25 Feature Warm Triad

The Best Early Prime Day Deals on Apple Products

Saturday July 5, 2025 7:22 am PDT by
Amazon is soon to be back with its annual summertime Prime Day event, lasting for four days from July 8-11, the longest Prime Day yet. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront, and there are already many deals you can get on sale ahead of the event. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a ...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...

Top Rated Comments

Shanghaichica Avatar
44 months ago
If Apple have a £199 iPhone I feel sorry for Android.
Score: 18 Votes (Like | Disagree)
Lounge vibes 05 Avatar
44 months ago
It would be really cool.
A $199 iPhone would be truly a fantastic product.
Even a $299 iPhone SE would be absolutely fantastic, and could still easily replace the old aging iPod touch.
But this is Apple.
What’s more likely is that they completely discontinue the 2020 SE, and the new one just replaces it.
Another very likely possibility is that they keep around the current SE at $399, and just price the 5G model at $499. I think that’s also very likely, and it would just replace the 11.
Score: 13 Votes (Like | Disagree)
now i see it Avatar
44 months ago
My guess: previous SE goes bye-bye after the new one drops.
It’s getting too cheap for the board of directors.
Score: 11 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
44 months ago
Personally, I don’t believe an iPhone costing $199 will ever happen. I don't see Apple offering 5G on a $199 iPhone device.

That is the iPod Touch price range.
Score: 9 Votes (Like | Disagree)
Shanghaichica Avatar
44 months ago

Umm, no. That's just wishful thinking. Two separate platforms. There are some who don't want anything to do with Android and there are some who don't want anything to do with iOS. I personally would like to try an iPhone but can't because it doesn't have a Call Screener with Google Assistant. Most the Apps I use, I prefer Google's, they just do a much better job.
The $199 android phones don't have call screener on there. Isn't that a pixel exclusive feature? Yes at the high end those that chose an android phone prefer it over iOS. However at the budget end they pick whatever they can afford. The price is the determining factor.
Score: 7 Votes (Like | Disagree)
one more Avatar
44 months ago

Personally, I don’t believe an iPhone costing $199 will ever happen. I don't see Apple offering 5G on a $199 iPhone device.

That is the iPod Touch price range.
That article suggests that the current 2020 iPhone SE (4G) might drop to $199, while its 2022 5G refresh will still sell for $399, as usual. We should know for sure in about a week.
Score: 6 Votes (Like | Disagree)