Apple has abandoned plans to update its low-cost iPhone SE in 2017.
(CCM) — Apple has pulled the plug on development of its successful iPhone SE and does not plan to release an updated version of the handset next year, according to a report quoted by Forbes. The iPhone SE is a low cost variant of Apple's iPhone and features a 4-inch screen. Apple's other 2016 models, the iPhone 7 and iPhone 7 Plus, feature 4.7-inch and 5.5-inch screens, respectively. The move comes as a surprise as the iPhone SE has been well received and has racked up healthy sales figures.
One possible reason for the decision to scrap plans for an upgrade to the iPhone SE is that the iPhone SE has become too successful, cannibalizing sales of higher margin iPhone 7 and iPhone 7 Plus models. But the impact is likely to be a lower overall market share for Apple as budget buyers look to other manufacturers for newer low-cost handsets. Ming-Chi Kuo, an industry analyst at KGI Securities, believes that canning the upgrade will result in a 10% drop in iPhone shipments in the second quarter of 2017 to 35 million units compared to the same period in 2016, when 40.4 million units shipped, according to Forbes.
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