Apple’s AI-Powered iPhone SE4 Incoming: Buy The Rumour?
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Apple (NASDAQ: AAPL) is poised to introduce new products on Wednesday, February 19, 2025, with industry analysts anticipating the launch of the fourth-generation iPhone SE as the centrepiece.
This device is expected to mark a significant leap forward for Apple’s budget smartphone line, potentially incorporating the company’s cutting-edge Apple Intelligence AI features.
The upcoming iPhone SE 4 is rumoured to boast several notable upgrades, including an A18 chip, a larger 6.1-inch OLED display, Face ID, and a USB-C port.
Perhaps most significantly, it’s expected to support Apple Intelligence, which would make it the first sub-$500 iPhone to offer access to advanced AI capabilities such as improved Siri with ChatGPT integration, Writing Tools, and image generation.
Morgan Stanley has projected a $499 price point for the new iPhone SE, positioning it as an attractive entry-level option in Apple’s smartphone lineup.
The firm maintains a $275 target for Apple stock, reflecting confidence in the company’s strategic direction and product pipeline.
This launch comes on the heels of reports that Apple has partnered with Chinese tech giant Alibaba to roll out AI services in China, the world’s largest mobile phone market.
This collaboration could be crucial for Apple’s AI strategy in a region where it faces regulatory hurdles and intense competition from local brands like Huawei and Vivo.
The integration of Apple Intelligence into a more affordable device like the iPhone SE 4 could have far-reaching implications for the company’s market position.
It would potentially democratise access to advanced AI features, previously limited to higher-end models, and could help Apple compete more effectively in price-sensitive markets.
However, this move also presents challenges. The inclusion of 8GB of RAM, necessary to support Apple Intelligence, in a budget device may impact profit margins.
Additionally, offering AI capabilities in the SE line could potentially cannibalise sales of higher-end models.
As Apple navigates the rapidly evolving AI landscape, the success of the iPhone SE 4 and its AI integration could be pivotal in shaping the company’s future trajectory in both developed and emerging markets.
Sources: eToro, TipRanks
