Apple (AAPL, Financials) is expected to introduce the iPhone SE 4, bringing artificial intelligence capabilities to its most affordable smartphone.

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Featuring a 6.1-inch AMOLED display and replacing the conventional home button with Face ID, the new model represents a major design change. Including an in-house 5G modem, it will also be driven by the A18 Bionic CPU, with 8GB of DRAM. The gadget would include Apple Intelligence, the suite of AI-driven technologies offered by the business, therefore establishing it as an entry-level choice for users looking for AI capability at a more affordable cost.

With overall sales for the fiscal year approaching 15 million and Apple expected to produce 3 million iPhone SE 4 devices in the first quarter of 2025, Morgan Stanley estimates. Reflecting a climb from the $429 beginning price of its predecessor, the iPhone SE 3, the phone is slated to start at $499. Apple might also remove the 64GB storage choice, therefore lowering the minimum storage capacity and supporting the price increase.

Though marginally, Apple Intelligence has already helped to shape iPhone demand in the United States. Data from IDC shows that, in the December quarter, iPhone sales in the United States dropped 2.7% year over year, compared to a 6.3% drop worldwide. Particularly for the iPhone 15 Pro and Pro Max, which witnessed higher demand as buyers chose reduced versions that featured Apple Intelligence, the 3.5 percentage point difference points to how AI-related traits helped boost domestic sales. Analyzers warn, meanwhile, that the general effect of artificial intelligence on iPhone demand is still restricted and has not appreciably changed world sales patterns.

Apple has not yet announced the official release date for the iPhone SE 4, but its appearance would represent a significant increase in artificial intelligence capacity among the range of products it offers.