Apple and Samsung Electronics are rolling out a series of budget-friendly smartphones to compete with Chinese smartphone makers that offer a wide range of cheap smartphones. Samsung Electronics unveiled the mid-range Galaxy S24 FE on Oct. 3, and Apple is set to launch the fourth-generation iPhone SE, an entry-level model, early next year.
Apple is close to starting production of the iPhone SE, codenamed “V59,” Bloomberg News reported on Oct. 2, citing people with knowledge of the matter. This marks Apple’s first iPhone SE update since the third generation’s release in 2022. The fourth-generation iPhone SE is expected to be priced at $429, more than $300 cheaper than the latest iPhone 16, which starts at $799.
The new model is anticipated to resemble the iPhone 14 in design and will feature Apple’s artificial intelligence (AI) software, Apple Intelligence.
Samsung, on the other hand, is introducing the Galaxy S24 FE two months earlier than its predecessor, the Galaxy S23 FE, which was released in December last year. The Galaxy FE series offers the key features of Samsung’s flagship Galaxy S series while lowering the price by scaling down some specifications. The new model will also include AI features, a 50-megapixel camera, and 3x optical zoom. The Galaxy S24 FE starts at $649.99.
Analysts say Samsung and Apple are launching budget-friendly models to counter the growing influence of Chinese smartphone makers. Although positioned mid to low-priced, the new mid-range models are equipped with AI features to tap into the rapidly expanding AI smartphone market.
Chinese smartphone manufacturers have been gaining ground in the global smartphone market. According to market research firm Omdia, Xiaomi ranked third in global market share (by shipments) in the second quarter, with a 15% share, after Samsung Electronics (18%) and Apple (16%). Other Chinese brands, such as Huawei, Vivo, Transsion, and Oppo, are also expanding rapidly.
“For Apple, which has been struggling in China, the iPhone SE could be a strategy move to reclaim market share lost to brands like Huawei and Xiaomi,” said an industry insider.
