One analyst with the KGI Securities firm, Ming-Chi Kuo, has revealed that Apple decided to cancel an upgrade yo one of their most successful iPhone of 2016. A new research which was obtained by MacRumours showed that Kuo noted Apple had decided not to release an update for the iPhone SE.

Apple is not going to release a new iPhone SE
Apple is not going to release a new iPhone SE

Why is Apple doing this? Kuo says that there are two main reasons. The company wants to increase the margins on the 2016 iPhone SE since its components will reduce in price, and they also want to remove any competition the 2017 iPhone SE would put on the iPhone 7.

The company has been known for pushing for profit share rather than market share and they might be pushing towards that angle again. Since there are also concerns at the moment lingering over the iPhone 7 sales, it would be bad for the company if they reported later that their sales had been impacted by their own budget phone.

However, Kuo believes that the decision is still going to affect the raw sales figures for the company. According to his estimates, Apple sales will drop by at least 10 percent in the second quarter of the next year. He believes that the second quarter sales report was highly boosted by the iPhone SE sales.

This is not the first time that the company has taken such an action. They have skipped various iPad generations before and other MacBook Pro upgrades when they have seen that the existing models can still get the job done. This would be the first time however, it would affect an iPhone.


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