No, a cheaper iPhone SE is not coming

Since reports started coming in of an Apple product launch event this month, there has been chatter about a $199 iPhone SE.

Analysts and tech insiders are increasingly building a narrative of this"$199 iPhone SE" which could increase Apple's reach in markets like India and Africa where Cupertino is still a premium player. But the idea, though appealing, might not make it to store shelves after all.

To bring a $199 iPhone to the market, Apple needs to make changes to its business model, something the company has been averse to since the launch of the first iPhone in 2007. The company makes premium devices with a premium price tag that ranges from $399 to over $1000.

Though these prices are hard to swallow in emerging markets like India where a phone from Xiaomi cost half the price of the iPhone SE, Apple hasn't really ventured into a pricing game to gain market share.

In fact, a "cheap" iPhone doesn't fit into Apple's scheme of things. For a long, Apple has relied on either selling old versions of the iPhone at a more affordable price or attracting new consumers by offering the iPhone SE in emerging markets. That approach has actually worked for Apple in India, with Counterpoint Research predicting over 6 million iPhones shipped in 2021. For the newer iPhones, Apple has relied on cashback offers and EMI schemes. By doing that Apple was able to broaden the appeal of the iPhone without offering a "cheap" iPhone.