And more importantly, the XR is the only post-iPhone-8 device with an LCD screen. Reengineering a device from OLED to LCD would likely be even more cost prohibitive than downgrading it to a simpler single-camera module.The original SEs took an iPhone 5 and 8 as-is and just added an upgraded chip and occasionally, a better, single camera module. That’s not really possible with any other Apple devices expect for the XR. The rest have multiple cameras, etc which make it cost prohibitive to what we know/expect from an SE device.
Also consider that the dual camera iPhone 11 started life at the same $699 price point as the XR and, perhaps more tellingly, exited at the same $499 price point. Using either as the basis for a $429 iPhone next year would appear to be feasible.
Contrast that with the all-OLED iPhone 12 lineup where the standard phone saw its price jump to $799 while the Mini took over the the $699 slot. The following year, maintaining the pattern, these were kept in the lineup at $100 less. But then this year - the iPhone 12’s final year in the lineup - they elected to drop the 12 Mini completely instead of knocking another $100 off of it’s price which would have seen it hit that crucial potential-pre-SE-duty $499 slot.
This strongly suggests Apple has no intention of bringing back the $499 legacy phone. Even if they decide to buck the trend and keep the 13 Mini around this September (to have a small, modern phone in the lineup for one final year) I would bet it stays at its current $599 price and the standard 13 exits early instead of also falling to $599.
When will we see a $499 OLED iPhone from Aplple? Maybe never. This means it’s not clear when we’ll see an OLED SE either. So, if the XR(/11)based SE is canceled as rumored (rather than simply delayed) it leaves no obvious candidate for an SE4. This opens up the door for a possible new low-cost iPhone product that instead of $429 starts at between, let’s say $549 to $679. Not an SE, but still a rehash of an older (OLED) phone at any rate. And maybe they do standard biannual form-factor switches instead of the much longer cycle of the SE. something like that.