There is MASSIVE demand for a more affordable iPhone, not so much in the US, but outside of it where our economies are weaker and we earn less. My wife and I want to move to iPhone from Android but the cheapest iphone where we live is iPhone 12 64GB (who wants 64GB???) for €550. That's very expensive for small storage. The next one up is iPhone 13 126GB for €619. Considering the average wage here is €1000 - 1200 per month, that's HALF a month's salary!!
Typically the best selling phones here range from €200 - €350 because that's what people can afford, at a push. So if the SE were priced at €420/450 for 128GB it would probably sell well, because people could save up the extra €100 to reach that amount.
The same is true of the majority of countries in the world. That's why Android has something like 85% global marketshare. At the moment people from these countries are experiencing the net and smartphones with Android, and are likely to stay on Android for as long as it's affordable. If Apple hopes to start winning some global market share, and more importantly the next generation of users, it needs to start offering something more attainable.
I also think these markets are RIPE for Apple to offer zero interest finance on Apple products like they do in their top markets, because even more people would get an iPhone if they could pay it off for €20 a month over 2 years. I know I would! But here in Cyprus we only have authorised resellers, no Apple stores. And if there were financing available people would also be ale to finance Apple Watch SE, Apple TV, iPad Air. Once they are in the ecosystem, they'll sign up for Apple TV+ etc.
It's a HUGE market and massive amounts of money to be made if only Apple would realise tha and step in locally to offer these things. As people's incomes improve etc, they could move up to MacBook and the latest iPhone. And those whose fortunes don't improve could at least finance the iPhone SE future models, Watch SE future models etc. In other words, life long customers.
I honestly don't know why its taken them so long to move into this market. They are leaving TRILLIONS on the table and the Android OEM's are TOO STUPID to realise what potential that market has. Especially Samsung. Their entry level and mid range phones are a joke, and expensive.
They should have offered S23/S24 level phones for €350 along with zero interest financing, as well as their tablets and watch. If they would have made name in the market that all their stuff is Apple-level yet available via financing, they would hve built up a MASSIVE customer base and locked them in their ecosystem. Instead they just copy Apple and are content to lose money. Idiots.
And the rest are worse. Xiaomi and the rest sell essentially the same budget phones year after year with the same specs at the same low price, instead of thinking long term. They are all asleep. Let's hope Apple wakes up.