(Bloomberg) — Apple Inc. plans to unveil a long-anticipated overhaul of the iPhone SE in the coming days, a move that will modernize its lower-cost model in a bid to spur growth and entice consumers to switch from other brands.
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The company expects to announce the device as early as next week, ahead of it going on sale later in the month, according to people with knowledge of the matter. Apple is unlikely to hold a launch event for the device, opting to reveal it on its website instead, said the people, who asked not to be identified because the plans are private.
The debut will mark a major shift for an oft-overlooked smartphone, which Apple first introduced in 2016 as an entry-level model. The existing version — released in 2022 — has grown dated: It’s the only iPhone that still has a home button and lacks Face ID. The new version will look more like the iPhone 14 and also include Apple Intelligence, the company’s AI software.
There are already telltale signs that the new phone is coming. Inventory of the current iPhone SE has dried up at Apple retail stores in many parts of the US, which typically happens before a refresh.
Apple retail employees at several stores say that inventory has been dwindling for weeks and customers who want to buy the device in certain configurations sometimes need to be turned away.
The phone remains available for purchase on Apple’s online store but some configurations — including a red version with 256 gigabytes of storage — aren’t shipping until March. Stockpiles of the iPhone 14 and 14 Plus also are running low.
A spokesperson for Cupertino, California-based Apple declined to comment.
Apple already discontinued the current SE and iPhone 14 in the EU because the products don’t comply with local laws requiring USB-C, a charging standard adopted by other iPhones in 2023. The next iPhone SE will get that same port, letting it return to the EU.
The current SE costs $429, which is hundreds less than the $799 regular iPhone 16. Given the new features and design of the updated model, Apple may increase that price. But it’s likely to remain in the same general range as entry-level smartphones from Samsung Electronics Co. and Alphabet Inc.’s Google.
Apple’s iPhone business could use a boost. Sales of the device declined 1% during the holiday quarter — a worse performance than expected — and Apple is banking on the new low-end phone to help restore growth.
