iPhone SE and new "e" versions show much greater ambition than a simple economical option.
For many years, Apple has become a name synonymous with breakthroughs and incredible growth speeds. Each product launch cycle attracts great attention from the market, from iPhone, iPad to MacBook. The company continuously launches devices with sophisticated designs, powerful performance and a tight software ecosystem. However, alongside that impression is always the "expensive" label that consumers attach to the company's products.
A clear turning point appeared when Apple decided to change the price structure. Since the iPhone X was introduced at a price of 1,000 USD, the price level of high-end smartphones has been pushed to a new level. When the device price increased, the profit per unit sold improved, but at the same time also narrowed the potential customer base, especially in price-sensitive markets.
It was in that context that the iPhone SE line was born as a different solution. Instead of reducing quality to lower prices, Apple chose to combine familiar design with powerful hardware, bringing high-end chips down to the lower segment. In recent years, that trend has continued to be maintained through "e" versions such as iPhone 16e or iPhone 17e. The question is: What does Apple really want when continuously launching cheap products, while their brand image is inherently associated with high-end?
Powerful products labeled as cheap
The first generation iPhone SE was launched in March 2016, at a time when the smartphone market had not reached the high price threshold as it is today. The device has a compact 4-inch screen, a design based on the iPhone 5s, a Home button integrated with Touch ID and a metal frame. What is noteworthy is not the appearance, but the fact that the device is equipped with an A9 chip like the iPhone 6s, the flagship model at that time. Apple has laid an important foundation: A cheap device but not weak in performance.
The second generation was launched in April 2020 with a starting price of $399 USD. The device retains the design of the iPhone 8 but inside is the A13 Bionic chip similar to the iPhone 11 series. In a context of many
Mid-range Android smartphones use significantly weaker processors, Apple bringing the A13 down to a $400 device creates a big boost. Users can experience portrait photography, Smart HDR or high performance that previously only appeared on high-end devices.
By 2022, the third-generation iPhone SE will continue to repeat the familiar formula. The machine has a design similar to the iPhone 8 but uses the A15 Bionic chip from the iPhone 13 series, supporting 5G. The starting price increased to 429 USD, but in return, the performance is among the best in the segment. This is also the last iPhone to retain the Home button and LCD screen, creating a crossover between tradition and modernity.
In December 2025, the first generation iPhone SE was officially put on the "outdated" list, marking the nearly decade of this line. At the same time, Apple gradually replaced SE with new "e" versions such as iPhone 16e and iPhone 17e.
iPhone 17e launched in early March 2026. Compared to 16e, the device is upgraded to a 3nm A19 chip, still retaining the 6-core CPU but reduced to 4 GPU cores compared to standard iPhone 17. Design has not changed much: 6.1-inch OLED Super Retina XDR screen, aluminum frame, IP68 water resistance standard. The highlight lies in the Ceramic Shield 2 glass layer that is 3 times more durable, the appearance of MagSafe and the C1X modem developed by Apple itself.
Compared to high-end iPhone 17 models, the 17e accepts trade-offs: Screen only 60Hz, missing multi-lens camera system. However, the price of $599 for 256GB configuration has raised the mid-range segment standard to a new level. The common point throughout the SE and "e" generations is a selective reduction strategy in appearance or high-end features, but still retains core processing power and experience.
Why does Apple produce cheap products?
To understand why Apple focuses on the iPhone SE line, it is necessary to look at the long-term strategic context of the company. As the smartphone market gradually saturates, the growth rate of hardware shows signs of slowing down. Apple is forced to find a new direction to maintain revenue and expand customer base.
An important step is to increase the price of high-end iPhones. Bringing the price to 1,000 USD not only helps increase the profit margin but also pulls the overall market price level up. In the following years, many Android competitors also increased prices sharply. When the game in the high-end segment became expensive, Apple again possessed a unique advantage: the ability to reduce prices while maintaining high performance thanks to self-developed chips.
From iPhone 4, Apple has built its own processor design capabilities. The A-series lines are optimized for iOS, bringing superior performance compared to "one size for all" chips that Android companies have to buy from third parties. This helps Apple save intermediary costs and take advantage of large production scale. Thanks to this, the company can launch an iPhone for 400 - 600 USD but still use the same chip platform as the 1,000 USD model.
The iPhone SE line is therefore not a compromise but the final step in a three-phase strategy: Raising high-end prices, pulling competitors to increase prices accordingly, and then launching low-priced products with superior performance. This approach creates direct pressure on the mid-range Android segment, while expanding market share in price-sensitive markets such as China and India.
Another benefit lies in the service. Apple is promoting segments such as Apple Music, Apple TV+, Apple Arcade or other subscription packages. To increase
service revenue, the company needs more new users in the ecosystem. A cheap but powerful iPhone is the ideal door for those who have used Android or have never owned an iPhone. Once entering the ecosystem, long-term engagement is very high.
This strategy is also being expanded to the computer segment. Information about the cheap MacBook model priced at 699 - 799 USD shows that Apple wants to repeat the formula: monolithic aluminum design, many colors and attractive price to attract iPhone users who do not yet have a computer. If successful, this device could account for up to 25% of Mac portable sales in the fiscal year.
All show that cheap products do not dilute the Apple brand. On the contrary, it is a strategic tool to increase users, strengthen the ecosystem and maintain development speed. Apple does not simply want to sell a cheaper iPhone, but wants to expand its borders, turning "cheap" into a gateway to the high-end world that they have built over the years.
