Apple can no longer rest on its laurels.

While we've reported on various rumors about the iPhone SE 4 over the past few months, new developments have emerged as we approach the second half of the year.

Earlier, leaks about the iPhone SE 4 mainly focused on its screen size, bezel design, and other visual aspects, most of which came from individual sources with questionable credibility.

However, as the estimated release date of the iPhone SE 4 draws near (rumors suggest it could be as early as September), the supply chain has started to share more information, indicating that this iPhone, with the most significant upgrades in its history, is getting closer.

Unprecedented Upgrades, Same "U" Across the Lineup

Among the newly exposed details, many are already confirmed, such as the iPhone SE 4 adopting an OLED screen and supporting Face ID, which means Apple's last small-sized iPhone with an LCD screen will bid farewell to us with the discontinuation of the iPhone SE 3.

It is reported that the OLED screen size of the iPhone SE 4 is now confirmed at 6.1 inches, the same as the iPhone 14 and 15, and it will directly adopt the same right-angled bezels as the iPhone 13, which means apart from the different camera, the iPhone SE 4 is visually identical to the iPhone 13.

Image Source: 91mobiles

Early leaked design drawings of the iPhone SE 4 showed a single-camera design, but unlike the widely speculated 12MP IMX503 sensor, the latest news indicates that the iPhone SE 4 will feature a 48MP camera.

Apple first introduced a 48MP main camera in the iPhone 14 Pro, replacing the years-old 12MP sensor, and subsequently made it standard in the iPhone 15 series. However, no one would have expected Apple to introduce this new sensor even in the iPhone SE 4.

Image Source: India today

Compared to the previous generation's 12MP main camera, the 48MP sensor offers significant upgrades in low-light photography, telephoto shooting, and more, meaning the imaging performance of the iPhone SE 4 is no longer limited to "QR code scanning" level and can even meet general daily photography needs.

However, such a significant upgrade doesn't seem like something Apple would typically do, so the credibility of this news is not high. The only supporting evidence that comes to mind is that the 12MP sensor has been discontinued along with the iPhone SE 3 orders, and after assessing costs, Apple chose to switch to a 48MP sensor. By then, all iPhones on sale will use the same sensor, making it easier for Apple to optimize imaging algorithms and integrate the supply chain.

From this perspective, the saved labor and supply chain costs might offset the increased cost of adopting a higher-spec main camera. Moreover, considering that the starting price of the iPhone SE 4 will be raised to $499, this decision makes sense from a cost perspective.

The only question is, will Apple really let the iPhone SE 4 have such high imaging performance, potentially impacting the sales of the iPhone 14/15?

Image Source: macrumors

Apart from the unexpectedly improved imaging performance, another rumor is that the iPhone SE 4 will adopt the A18 processor. To be honest, my first reaction to this news was, "Are you kidding me?"

Because prior to this, most leaks suggested that the iPhone SE 4 would use the A16 processor, the same chip as the iPhone 14. Based on past iPhone SE series configurations, this guess was the most consistent with product trends, but this time, Apple seems unwilling to play by the usual rules and directly equipped the iPhone SE 4 with the A18 processor, making the iPhone SE series for the first time have the same performance as mainstream iPhones of the same generation.

Image Source: iphone-mania

Although the A18 chip has not been released yet, information from databases suggests that its single-core performance will exceed 3000, and its multi-core performance will exceed 8000. Compared to the currently exposed data of the Qualcomm Snapdragon 8 Gen4 and MediaTek Dimensity 9400, the A18 still leads in single-core performance but lags behind in multi-core compared to the Android camp.

If you compare the A18 to current mainstream flagship chips, you'll find that it basically has no competitors. Even the A17 Pro has slightly lower overall performance than the A18, not to mention that the A18 will significantly enhance AI performance with a more powerful NPU core.

Now, let's take a look at the current specifications of the iPhone SE 4: A18 chip + 48MP main camera + OLED screen + Face ID + iPhone 14 design. If the price is indeed $499, then we can announce in advance that this is the most worthwhile iPhone to buy, even rendering the standard versions of the iPhone 14/15 obsolete.

The only question now is: Will Apple really release such a fully-featured, arguably the most cost-effective iPhone in years?

To Regain Market Share, Apple is Turning Over a New Leaf

A few years ago, I would have confidently said that this rumor was flawed, at least the chip couldn't be the A18, as it didn't align with Apple's market strategy. However, now I find it difficult to say "definitely not," as Apple's actions in the past two years have repeatedly proven me wrong.

A decade ago, Apple's iPhone dominated the smartphone market, with both its system ecosystem and processor performance at the pinnacle, with no real competition. Today, however, the situation is vastly different, with countless phone models capable of going head-to-head with the iPhone, forcing Apple to adopt more aggressive promotional strategies to maintain sales and market share.

Image Source: Leitech

In a nutshell: Times have changed, folks. While Apple was once invincible, today, apart from its iOS ecosystem, it no longer holds an absolute advantage in hardware and performance. From the much-criticized 60Hz screens on standard models to the mixed chip configurations across iPhone generations, it's clear that Apple is making changes.

In fact, as the new specifications of the iPhone SE 4 are being exposed, so are those of the iPhone 17 series, which also feature upgrades that can be considered the most significant in their history. According to leaks, the iPhone 17 series will come standard with high refresh rate screens and 12GB of RAM across the lineup. Additionally, the camera module will receive a comprehensive upgrade, with new lens coatings and sensors significantly reducing issues like ghosting and enhancing low-light photography.

Image Source: Macrumors

While I personally believe that the Pro models having exclusive access to high refresh rate screens for four generations was already excessive, analysts had previously believed that Apple would not introduce the feature until the iPhone 18 series. Considering that analysts' reports are not baseless, it's likely that something has prompted Apple to accelerate the pace of hardware iterations for the iPhone.

For example, the focus on the mid-range and emerging markets, or the development of the AI ecosystem. In fact, some believe that the A18 chip in the iPhone SE 4 is intended to rapidly expand the AI ecosystem. Considering Apple's commitment to AI ecosystems, the exaggerated upgrades of the iPhone SE 4 suddenly don't seem far-fetched.

Filling the gap in the mid-range market for iPhones has always been the mission of the iPhone SE series, but previous models did not effectively accomplish this task. Their outdated designs made them more often seen as backup phones for iPhone users rather than stand-alone products for the mid-range market.

Image Source: Apple

For Apple, with the global consumption downgrade and the extension of users' replacement cycles, sales expectations for high-end iPhones are not optimistic. There are only two ways to maintain market share: 1) offer discounts and promotions; 2) introduce more competitive products.

Apple is already using the first method, which, while effective, has led to a decline in iPhone hardware margins and directly affected early adoption rates. After all, no one wants to pay full price if they know a significant discount is coming soon.

Therefore, it might be more beneficial to initially introduce a truly competitive iPhone with a mid-range price point while maintaining stable pricing for the main series. This way, Apple can ensure profitability for the main series while avoiding losing the mid-range market.

"Boxing with Both Hands": How Can Apple Avoid Cannibalization?

The biggest question with this strategy is how to prevent the iPhone SE 4 from impacting sales of the main iPhone series.

In reality, I believe this impact is difficult to avoid but won't significantly reduce main series sales. Firstly, the single-camera configuration of the iPhone SE 4 means it cannot offer new iPhone features like spatial audio or meet higher imaging demands.

Image Source: Apple

Secondly, the iPhone SE series updates far less frequently than the main series, meaning the impact on main series sales will be most pronounced initially but will diminish as subsequent main series updates and promotions occur.

However, a competitive iPhone SE will allow Apple to gain a larger market share in emerging and low-to-mid-range markets, ensuring its presence in the early stages of smartphone ecosystem development in these markets, which may be even more crucial for Apple.

For users, the iPhone SE 4 will undoubtedly be a cost-effective "iPhone" worth looking forward to, but it may not be good news for Apple's competitors. Even in the highly competitive Chinese mobile phone market, the iPhone still has strong competitiveness. If the iPhone SE 4 enters the mid-range market with high cost-effectiveness, it will undoubtedly be a game-changer, causing a significant ripple effect in the market.

At that time, we may witness a truly epic battle in the mobile phone market.