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if there is going to be an SE 2, I would at least HOPE Apple is taking the mid-range space seriously enough to do more than literally just swap out a CPU. Maybe you're right; maybe it won't be worth buying.
Well, it’s not really mid-range, since Apple’s prices run from $349 to $1,149. It’s a $349 phone, that’s what it was when introduced and what the refresh will be (unless they drop the price again!).
Re: Which CPU, in 2016 the SE got the A9/2GB because Apple knew that A8/1GB from the 6 (2014-era) would never get them through to a 2018 refresh. There’s a huge difference between A8/1GB and A9/2GB, just ask those trying to run an iPhone 6 on iOS 11. And people buying an SE today will want to run iOS 12/13 on that A9.
A9/2GB also went into last year’s $329 iPad for similar reasons, but note they didn’t use the A10 in it, or do a CPU refresh to the SE last year either. In other words, Apple is fine with their lowest cost products being a CPU generation behind.
So now for a 2018 refresh, A10 or A11? The X is a 2436x1125 display and needs the dual-core 600 billion ops per second neural network processor of the A11 for FaceID. But it’s overkill for the SE2 and has a ton of associated R&D cost. Being the newest chip, that cost hasn’t yet been amortized over very many units.
So taking everything into account—yes price is very important but also fact that the A10 alternative is quite sufficient—leads those who like to make logical speculations toward a conclusion. Which is, the SE2 is probably going to have an A10.
Could it have an A11? Sure. Apple could bite the bullet on cost, maybe figure it could be sold for 3 years instead of 2 (at which point it will likely be retired as a platform). The A11 uses TSMC’s 10nm process instead of the A10’s 16nm, so it’s more energy efficient. The neural processor, though not needed for FaceID, could still be used for other machine learning tasks. Price is really the only downside.
But ultimately it’s a $349 phone (or lower; $329 or even $299 could happen), designed to be the best, most affordable iPhone Apple can make for the price. Though priced at the low end, the SE does attract a price-insensitive segment who want it because it’s small, and they surely would prefer the A11.
The high margins of the iPhone X does give Apple some space to make a better, lower-priced version of the SE, and I for one hope it does have an A11. But if I were betting, I’d have to say A10.