If the SE2 used A11, it would immediately cannibalize the iPhone 7 and iPhone 8.
When the SE was released, Apple had a different product stack. The SE was a 4-inch phone and Apple sold no other such devices. If we agree SE2 will move to 4.7-inch, it would be compete with iPhone 8. Right now, iPhone 8 sells for $699. I don't think Apple is ready to kill iPhone 8 and replace it with a $449 device.
I agree when they released the iPhone SE, they had recently launched the 6 and needed to keep the customers upgrading from the 5s and previous models. They offered 2 ways to do so (iPhone 6-7: bigger / more features | iPhone SE: more compact yet quite up to date at launch).
The situation in 2018 looks very different with most of the market having moved to bigger phones and the SE and previous 4 inch models being the minority of Apple's market.
I believe we are looking at this situation too much in regards to iPhone model numbering rather than function that these phones fullfil in the market for Apple. As I mentioned earlier I believe there are 2 options. My gut feeling tells me they will ditch the 4 inch format (not necessary anymore to cater this share of the market - they might regret this decision in a couple of years though).
I will clarify what I mean by "we are looking at this situation too much in regards to iPhone model numbering rather than function that these phones fullfil in the market for Apple":
5.8" : iPhone X successor - probable starting price around $949 if they master the manufacturing of FaceID by Sept.2018)
6.1" : LCD : it will be called iPhone SE but will cater entry market with starting price around $699 - current iPhone 8 price level)
6.5" : iPhone X+ : probable starting around $1149)
iPhone 8 : probable starting price around $599
iPhone X (2017 Edition): probable starting price around $849
iPhone 8+ : no idea ?!
iPhone 7 and prior models disappear from the product line (transition phase to the coming decade completed*)
The current iPhone SE will still be fast enough for another 2 years for most SE users.
They refresh the iPhone 8 on a bi-yearly basis (just as for the iPhone SE), they save money with components. iPhone 8+ disappears after 2020 (these customers can afford the 6.5"). The iPhone 8 devalues slightly after 2018 to end up around $499. The bi-yearly updates takes care of anchoring the price around that area.
The 6.1" becomes the "cheap" option to get the new design over time.
Apple manages to place all iPhones in the current product line at different price points, end of story...OR...
*Well let's not forget that this customer base using the iPhone SE likes it for numerous factors, the most often cited being :
- price
- small format
- developing countries
- headphone jack
I personally believe that they will have to get back to a 4 inch format after 2020 (if they attempt to shuffle around the product line as described above). Because the SE has numerous marketing advantages they will not be able to shun this fringe of the market indefinitely. Unless they leave it to the competition.
/MilK