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It’s possible that Apple’s first event in 2022, which is expected to take place on March 8, would include an updated version of the iPhone SE. There are rumours that Apple may discontinue the existing iPhone SE and instead release a new model with a lower price tag, which is believed to retail for $399.

According to experts, Apple could keep the 2020 iPhone SE in production and lower the price to approximately $199. It’s possible that at this price range, Apple could gain a foothold in markets like Africa, India and South America where Android smartphones are popular.

Apple has never offered a sub-$200 iPhone previously, with the $399 iPhone SE positioned as the company’s most inexpensive device to date. However, as smartphone experts point out, component prices are low enough that the company may be ready to explore offering an even more basic iPhone alternative.

Even though Apple has never aggressively targeted the low-end smartphone market with its flagship smartphones, Apple is well-known for keeping earlier iPhones to the market. It will be providing them with more reasonable price points when launching new products.

As an example, with the iPhone 13, Apple reduced the price of the iPhone 12 while keeping it on the market. Aside from the iPhone SE, the iPhone 11 from 2019 is still available for purchase for $499, making it Apple’s most cheap handset after the iPhone SE.

Apple may decide to retain the old iPhone SE around and offer it for a low price of $199 in emerging economies, resulting in significant sales in those regions and long-term services income while expanding the iOS ecosystem.

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Apple might potentially use such a device to replace the iPod touch, which has been out of date for many years and hasn’t received an upgrade in that time. Since 2019, there have been no changes to the iPod touch, which run on an A10 Fusion processor. With the 32GB, iPod touch selling for $199, a $199 iPhone SE would make an excellent alternative.

We believe that there is no indication that Apple intends to keep the older iPhone SE on the market as a lower-cost option, although it is evident that there is an incentive to continue doing so. In any case, Apple is on the verge of releasing a new iPhone SE with the same overall design as the previous model but with processor advancements and 5G connectivity.

In a recent interview, Apple analyst Ming-Chi Kuo predicted that the iPhone SE in 2022 would be the company’s cheapest 5G iPhone ever, offering quicker connection to millions of people at a low price.