iPhone 14 is said to be the base of the next generation iPhone SE.
Investment bank Morgan Stanley has said that Apple is not reducing orders for the iPhone 16 series and that it will be the iPhone SE 4 that will unleash Apple Intelligence.
Morgan Stanley previously told investors that iPhone 16 sales were lower than expected. However, currently, the iPhone 16 Pro and iPhone 16 Pro Max seem to be selling better, although the lead time for the iPhone 16 is still shorter than the current one for the iPhone 15 series.
This is primarily based on lead times estimated by Apple, which does not release details about how many iPhones it will sell or produce. In a memo to investors viewed by Apple InsiderHowever, Morgan Stanley said it believes improved supply conditions are contributing to shorter lead times.
iPhone lead time delays (Source: Morgan Stanley)
The company’s own supply chain research found no change in orders for iPhone 16 models. But the highly anticipated iPhone SE 4 is “increasingly showing signs of becoming a hot topic heading into 2025.”
In other words, Morgan Stanley expects the iPhone SE 4 to launch in March 2025 and benefit from Apple Intelligence support. This makes the new iPhone “more attractive than most previous iPhone models that lack Apple Intelligence support or sell at a higher price point,” analysts said.
Morgan Stanley believes the iPhone SE 4 will be Apple’s way of selling into what analysts call the low-end smartphone market. Analysts previously expected Apple to manufacture and sell 15 million iPhone SE 4 units, but now expect it to be between 15 million and 20 million units.
This relies on iPhone SE 4 supporting Apple Intelligence. But Morgan Stanley believes it will, and recent rumors about the device are borne out.
