The biggest misconception people have about the SE: Apple is targeting those who want small phones.
In reality, the SE is a low-cost iPhone targeted at price sensitive consumers.
In retrospect, it’s not just about the size of the iPhone SE, It was also Regarding the affordable price point that Apple offered as an entry-level iPhone. I know you’re inferring India’s market for the SE continually, but the iPhone is inexpensive enough where someone can pay cash without having to finance it and still have the iOS experience. It’s the same concept why Apple implemented the 2017 9.7 iPad starting at $329, which allowed the consumer to still experience the iPad in iOS without having to spend iPad Pro prices.
Everything from the long refresh cycle to the time it was it introduced (out of cycle with the premium iPhones), assembly in India, to the aggressive pricing around the world (especially in SE Asia) tells me it's a low-cost phone.
Just to clarify, the iPhone SE was never intended and will never be intended to be an upgraded iPhone annually. (Apple doesn’t even market the iPhone SE at all). I think that’s evident because of the materials used, with the 5S chassis, dated technology and display, and in order to keep the price point, Apple did not include features like 3D Touch, Haptic engine, ect.
Almost Half of the iPhone SE sales are in direct contribution from the U.S and China.
If anyone listens to the Q3'2016 earnings conference call with Apple immediately after the launch of iPhone SE, Tim Cook says the iPhone SE strategy is working: "We added millions of first-time iPhone buyers in the first quarter." He doesn't say "we're happy to provide an upgrade path for those who want a small phone.".
Ask yourself what does the consumer hear during a Keynote, and the answer Is exactly what Apple wants the consumer to hear. Did you watch the March 2016 keynote? Greg Joswiak specifically stated that the iPhone SE was introduced because there was a strong outcry for those who wanted a smaller iPhone. We know the iPhone SE was not just intended for the U.S. market, but was also intended globally as well, which rightfully should be for what it cost for the iPhone outside United States.
The strategy with SE has never been to satisfy one handed users. It's nice those users appreciate the SE. But the real strategy is to get consumers who haven't bought their first iPhone (read: India) to buy the SE..
Thats not entirely true. I agree that it’s meant as a global phone, but Apple specifically stated that the SE was highly considered because of a strong vocal demographic that wanted this iPhone. See how Apple marketed the SE during the March 2016 Keynote. As I mentioned earlier it was reiterated during the launch of the SE during the March 2016 Keynote that it was intended to be for a demographic for those who wanted the smaller iPhone at an affordable price point. Those are the two major factors with the SE, not the technology itself.
Tim Cook stated that he was pleasantly surprised by the sales of the SE, which we know is due to the U.S. and China’s market.
When you look at the Apple revenue from India, it's nowhere near China. It's certainly not the next China. So it makes complete sense Apple doesn't update the SE this year. After all, it's still a very expensive phone for the majority of Indian consumers.
Although the SE can be discounted heavily in United States and can be found for as little as $150, I understand it doesn’t reflect the price globally for the price point of the SE. However, as I stated before in other threads, if the SE is not updated, undoubtedly Apple will retain it for at least another year in their lineup for reasons already mentioned.