Apple (AAPL) could be gearing up to announce a low-end phone early next year alongside upgraded iPads, according to an exclusive Bloomberg report. The report stated that Apple could be close to starting production on an updated version of the iPhone SE, codenamed V59, which will become the company’s new entry-level model. Along with the revamped iPhone SE, Apple aims to introduce new iPad Air models and enhanced keyboards around the same time.
AAPL’s New Low-End Phone Could Be the First Update to iPhone SE
The upcoming launch will mark the first update to the iPhone SE since 2022 when the model received 5G capabilities. With the latest version, Apple is moving away from the traditional home button and moving to an edge-to-edge screen design, similar to its higher-end offerings.
Additionally, the new iPhone SE is expected to support Apple Intelligence, a suite of AI tools that will also be compatible with the iPhone 16 and the high-end versions of last year’s iPhone 15.
Why Is AAPL Upgrading the iPhone SE?
With this upgrade, AAPL expects to make the SE more appealing to budget-conscious shoppers and help Apple compete more effectively in the low-end smartphone market, especially against Android rivals like Huawei and Xiaomi. Android phones are challenging AAPL and have gained significant market share, particularly in China.
This is despite the iPhone SE being priced at $429, less than the standard iPhone, but still more expensive than many of its competitors. Apple hopes to attract more cost-sensitive buyers by upgrading the SE iPhone and regain some of its lost market share.
AAPL Is Upgrading iPad Air Models
Meanwhile, the tech giant is internally upgrading the new iPad Air models, codenamed J607 and J63, to improve performance. Apple is also preparing an updated version of its Magic Keyboard accessory, codenamed R307 and R308, for the 11-inch and 13-inch versions of the new iPad Air, including some features previously exclusive to the iPad Pro keyboard.
AAPL Is Facing Fresh Trouble from the U.S. Labor Board
Even as AAPL is planning these upgrades, the company is facing fresh trouble after a complaint from the U.S. Labor Board. This complaint accuses the tech giant of infringing on employees’ rights to organize and advocate for better working conditions. Furthermore, the Labor Board has alleged that Apple maintained a series of unlawful workplace rules designed to suppress employees’ ability to push for change.
What Is the Apple 12-month Price Target?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 24 Buys, nine Holds, and one Sell. Over the past year, AAPL has increased by more than 25%, and the average AAPL price target of $248.07 implies an upside potential of 9.6% from current levels.
