Multinational technology company Apple will not have its annual refresh cycle to its affordable handset iPhone SE. This is due to maintain a high-end margins amidst its flagging iPhone sales, says KGI Securities analyst Ming-Chi Kuo.
Usually, Apple rotates product after a one year period, however, iPhone SE is unlikely to have its usual one year rotation. According to Kuo, Apple will prolong iPhone SE's usual one year rotation in order to boost its gross margins to minimize cannibalization of high-end flagships like the iPhone 7.
According to Appleinsider, Kuo specifically said the new iPhone SE model is implausible to launch in the second fiscal quarter of 2017. After iPhone SE debuted this year on March 31, some speculations arose that a new version with updated internals will be release roughly at the same time next year, 2017. However, the KGI analyst did not mention any plans beyond the second quarter, which indicates that a refresh might happen later in the year.
In the first half of 2017, total shipment volume of iPhones will decline during the first half of 2017 as forecasted by Kuo. This is due to the tepid demand in China, with a slow shipment volume of 4.7-inch iPhones and the lack of an iPhone SE refresh. Stressing that shipment volume became higher during the first half of 2016 due to the "upbeat demand for the iPhone SE," MacRumors reported.
However, Kuo believes that Apple will utilize its effort to make component makers to drop its prices to maintain its margins. He expects suppliers to start reducing their component prices before the year ends.
Generally, Kuo forecasts that iPhone shipment volume will drop year-over-year in the second quarter of 2017, landing between 35 to 40 million, which is less than last year's 40.4 million during the second quarter of 2016. In vetoing an immediate iPhone SE update, Apple is considering another step to increase profit.
Having many of the iPhone 6s' features and component, it is unclear what kind of upgrade the iPhone SE will be needing. With 4-inch frame like the iPhone 5s, its internals are also powerful enough to remain as an efficient phone which could last for a couple of years.
Watch Apple Event featuring the iPhone SE below:
