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People used to say the SE was for people who wanted a small phone. It has never been about being small, or having a home button. It has always been a cost oriented device based on last generation tech mixed with current generation tech.
Apple throughout its history has always made devices with upgraded internals within the same form factor.

With that said there were many people who preferred the SE because it had a physical button if they got lost. You also had a segment of the population that liked smaller phones and of course you also had the price conscious people who just wanted the cheapest "new" iPhone they could get.
 
I don't plus the price has gone up for the Pros and AirPods Pro 3 for no reason.

It's to increase the average spend, so they can report higher revenues.

The strategy Apple are going for with the Air is to get a number of people who previously weren't particularly interested in the feature set of the Pros to pay more for the Air to get a sleek design. The people who were getting Pro's will largely stick to the Pro which is now more expensive, so they're paying more. The 16e (supposedly followed by a 17e early next year) is more expensive than the SE was, so they're paying more.

It's also worth bearing in mind this is to be the last release of a regular iPhone in September and this will then move to the first half of the year, so the 17 has to last a year and a half. I believe this is why the regular iPhone is a bigger upgrade than many expected to stay competitive for a longer period as it won't see an update until first half 2027.
 
Apple throughout its history has always made devices with upgraded internals within the same form factor.

With that said there were many people who preferred the SE because it had a physical button if they got lost. You also had a segment of the population that liked smaller phones and of course you also had the price conscious people who just wanted the cheapest "new" iPhone they could get.
I think it’s iOS UI/X that benefits from a larger display as elements of LG would not quite work or function properly with smaller displays. iOS 26 available to run on displays smaller than 6.1” are probably not a great experience or most consumers have gravitated to larger displays in other parts of the world due to it being their main point of access to the internet.

Apple is a global company it is not going to make small screen phones to make the American and Canadian market happy. I don’t see many people in Latin America with small display phones as most are large screen Android phones that are carrier promotions.
 
It's to increase the average spend, so they can report higher revenues.

The strategy Apple are going for with the Air is to get a number of people who previously weren't particularly interested in the feature set of the Pros to pay more for the Air to get a sleek design. The people who were getting Pro's will largely stick to the Pro which is now more expensive, so they're paying more. The 16e (supposedly followed by a 17e early next year) is more expensive than the SE was, so they're paying more.

It's also worth bearing in mind this is to be the last release of a regular iPhone in September and this will then move to the first half of the year, so the 17 has to last a year and a half. I believe this is why the regular iPhone is a bigger upgrade than many expected to stay competitive for a longer period as it won't see an update until first half 2027.
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