Reportedly, Apple is planning to launch a new low-cost iPhone next year that will help it balance out the slow-down in iPhones' sales and win customers in emerging markets.
The name and price of the new model hasn't been decided yet, but it should arrive as the latest generation of the iPhone SE that debuted in 2016.
Here are more details.
Response to stimulus
Decision to revive the low-cost iPhone comes amid slumping sales
Earlier this summer, Apple lost the title of the world's second-largest smartphone maker to Huawei. And just last month, OPPO surpassed the iPhone maker to push it to the fourth spot for the first time in a decade.
The Cupertino giant has suffered two straight quarters of slow-down as iPhones' shipments fell 15% year-on-year during Q2 2019, according to IHS Markit.
US-China trade war, Apple's pricing strategy have also affected sales
The weak demand for iPhones is also due to the escalating US-China trade war that has affected consumer sentiment in China, the company's third-largest market. Moreover, Tim Cook, Apple's Chief Executive Officer, has acknowledged that "price is a factor" behind poor sales in emerging markets.
With low-cost iPhone, Apple wants to emulate iPhone SE's success
Notably, the iPhone SE sold about 30 million units in its debut year and another 10 million between 2017 and 2018.
Hence, it is no surprise that Apple wants to emulate iPhone SE's success with a new, cheaper iPhone that could boost sales for the company in 2020 when the demand for iPhone 11-series would naturally begin to slow down.
The new model likely to offer a 4.7-inch LCD display
Citing sources familiar with the development, the report claims that the upcoming low-cost iPhone will be similar to the 4.7-inch iPhone 8 that was introduced in 2017.
However, it will "share most of the components with the flagship iPhones" coming this year. Further, the new handset will also feature an LCD display to achieve the lower price-tag.