Apple’s Shockingly Successful iPhone SE Won’t See an Update in 2017, According to New Report

Apple isn’t likely to release an annual upgrade for what could be its most successful phone of 2016, a new report said.

Cupertino has reportedly decided not to release a 2017 refresh of the company’s iPhone SE, according to a research note by KGI Securities’ Ming-Chi Kuo — who is widely regarded as being the best Apple analyst “on the planet”. This lack of an update likely stems from Apple’s attempts to increase its margins on the iPhone SE as its aging components reduce in price, and to reduce the risk of a 2017 iPhone SE stealing sales away from the more expensive and profitable iPhone 7, according to Kuo.

Apple is expected to put pressure on component manufacturers to drop prices, and suppliers may begin to reduce prices between November or December 2016. Of course, not all suppliers will cut prices, Kuo noted. Samsung, which is the primary supplier for certain iPhone components, may even use its bargaining leverage to raise its prices. Other companies, like the Taiwan Semiconductor Manufacturing Company — which is the sole supplier of Cupertino’s A10 chips — are unlikely to be affected by Apple’s attempt to increase its margins, MacRumors reported.

As a result of a missing iPhone SE refresh, Kuo predicts that overall, raw iPhone sales will drop in 2017’s second fiscal quarter — reaching between 35 to 40 million, as opposed to the 40.4 million in the second quarter of 2016.

Apple first introduced the iPhone SE in March 2016 — and it turned out to be a surprise commercial hit. The 4-inch phone managed to pack in many of the features and components of its larger cousin in a smaller package. Forbes contributor Gordon Kelly even argued that, dollar-for-dollar, the iPhone SE is a better buy than the newer and more expensive iPhone 7.

Of course, even with the lack of a refresh, the iPhone SE’s internals are still powerful enough to keep it a relevant and capable device for at least a few more years.

[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]