Apple iPhone SE4: Starting at 4500, Can AI Help Reverse its Declining Market Share in China?

Apple iPhone SE4: Starting at 4500, Can AI Help Reverse its Declining Market Share in China?Apple CEO Tim Cook officially announced via X (formerly Twitter) that a new member will join the Apple family on February 19th. Previously, Bloomberg reporter Mark Gurman had leaked that Apple would launch the iPhone SE4 next week, directly listing it on its official website without a press conference

Apple iPhone SE4: Starting at 4500, Can AI Help Reverse its Declining Market Share in China?

Apple CEO Tim Cook officially announced via X (formerly Twitter) that a new member will join the Apple family on February 19th. Previously, Bloomberg reporter Mark Gurman had leaked that Apple would launch the iPhone SE4 next week, directly listing it on its official website without a press conference. These two pieces of news corroborate each other, signaling the arrival of the new iPhone SE. As the lowest-priced series in Apple's phone lineup, the iPhone SE doesn't see frequent updates. The previous generation was released on March 9, 2022, nearly three years ago. In China's fiercely competitive smartphone market, each generation of iPhone SE has almost inevitably been labeled a "stupidity tax product" by domestic netizens. The iPhone SE 2 and 3, in particular, stuck with a large chin and forehead design even as full-screen displays became ubiquitous, making them look out of place compared to Android phones or other iPhones like they were from a different era. However, the upcoming iPhone SE4 seems to have learned from its predecessors' mistakes, addressing most of its shortcomings. Boasting AI capabilities, upgraded RAM, and a full-screen design, it's being hailed by many as the "strongest iPhone SE."

Bloomberg, MacRumors, and other overseas media have reported extensively on the iPhone SE4's design and specifications. The screen size is upgraded to 6.1 inches, abandoning the much-criticized "large forehead" and "large chin" for a full-screen design similar to the iPhone 14. The screen resolution is 11702532, but unfortunately, the refresh rate is only 60Hz. (Image source: Weibo blogger MajinBu) The rear camera is a single 48-megapixel lens, and it doesn't support the spatial photos/videos format introduced by Apple Vision Pro. Like the iPhone 16 series, the iPhone SE4 will use a USB-C port, but to control costs, this port may only support the USB 2.0 protocol. While the compromises on screen refresh rate, rear camera, and USB-C port might seem less than ideal, they are understandable given cost constraints.

Given its lower positioning, the iPhone SE4 will undoubtedly be cheaper than the iPhone 16. Considering the starting price of the iPhone SE 3 in China was 3499, the upgraded iPhone SE4 is predicted to start around 4500. A higher-than-expected configuration could potentially impact iPhone 16 sales. Fortunately, the iPhone SE4 will conventionally feature Apple's new A18 SoC, and to support Apple Intelligence smoothly, RAM will be upgraded to 8GB.

Alibaba co-founder Joseph Tsai has confirmed that Apple has chosen Alibaba as its localization partner. However, sources reveal that Apple is still collaborating with Baidu, diversifying its investment to mitigate risk. The AI suite for Apple Intelligence will be jointly provided by Alibaba and Baidu. (Image source: Apple) Alibaba and Baidu, two leading Chinese internet giants, have developed Tongyi Qianwen and Ernie respectively. The Qwen model from Tongyi Qianwen excels among open-source models, while Ernie 4.0/4.0 Turbo stands out among closed-source models (Baidu will soon release Ernie 4.5, open-sourcing it on June 30th). These top AI companies working together will develop AI features for Chinese iPhone users, ensuring that the AI services and experiences offered on iPhones like the 16 series, iPhone 15 Pro/Pro Max, and iPhone SE4 will not disappoint. Furthermore, the iPhone SE4 may debut with Apple's self-developed modem instead of a Qualcomm modem, a feature potentially shared by some iPhone 17 models launching in September.

Undoubtedly, the iPhone SE4 represents the most significant upgrade in the series' history. It not only removes the long-criticized large chin and forehead but also adds AI functionality, significantly lowering the barrier to entry for Apple users experiencing AI. However, the iPhone SE4 isn't perfect; it still features a 60Hz screen and a single rear camera. For Apple, the iPhone SE4 is crucial; it could help the company reverse its declining market share in China amidst the resurgence of compact flagship phones.

The demand for smaller phones has never ceased since the industry moved to larger screens. To respond to consumer requests, Apple launched the iPhone 12 mini and iPhone 13 mini, but their underwhelming performance led to their discontinuation. Domestic manufacturers also pay attention to the compact phone market, but unlike the 5.4-inch iPhone 13 mini, Xiaomi's compact flagships reach around 6.3 inches. @DigitalChatStation revealed that as of the fifth week of 2025, Xiaomi's 15 series had 2.5 million activations, exceeding competitors, showing that compact flagships are not a niche market. (Image source: Weibo screenshot)

Perhaps seeing the strong sales of Xiaomi's 12/13/14 compact flagships, vivo launched the X200 Pro mini, and OPPO plans to release a Find X8 mini (the exact name is yet to be confirmed). These products show that it's not compact flagships themselves that are failing, but rather those with excessively small screens. Manufacturers realize that a 6.0- to 6.5-inch screen provides better grip and one-handed usability without compromising user experience. The iPhone SE4's screen size increase from 4.7 inches to 6.1 inches likely reflects this realization.

In the past, I scoffed at the release of each iPhone SE generation, criticizing Apple for its "money-grabbing" tactics. However, I'm optimistic about the iPhone SE4, even considering purchasing one. Compared to previous models, the iPhone SE4 addresses significant shortcomings, upgrading the screen size and charging port. The 60Hz refresh rate and single camera are not major drawbacks, especially considering the iPhone 16 also has a 60Hz screen and lacks a telephoto lens. While the lack of a main camera prevents spatial photo/video capture, this feature is largely insignificant for daily use.

Compared to Xiaomi, vivo, and the upcoming OPPO compact flagships, the iPhone SE4's advantages lie in its brand value, software and hardware ecosystem, and AI capabilities. Although Apple's share of the high-end market in China is declining, only Huawei truly rivals the iPhone, and the Mate 70 series doesn't offer a compact version. Only a handful of manufacturers in China have built complete software and hardware ecosystems, and Apple's "ecosystem" and software advantages are significant. (Image source: Apple)

Domestic manufacturers place significant emphasis on AI, and recently, mainstream brands besides Xiaomi have integrated their AI assistants with the DeepSeek-R1 model to enhance their capabilities. Apple partnered with the powerful OpenAI overseas, and in China, it's collaborating with both Alibaba and Baidutwo industry-leading AI companiesto develop the AI suite for Apple Intelligence, potentially resulting in a superior AI experience for Chinese iPhones compared to their international counterparts. Even if it lags behind Xiaomi and vivo in screen refresh rate and camera capabilities, the iPhone SE4's brand recognition, software and hardware ecosystem, potentially leading-edge AI, and "cheapest AI iPhone" positioning give it blockbuster potential.

iPhone SE4: Apple's Biggest Hope for a Sales Rebound?

Canalys data shows a significant 17% drop in Apple's smartphone sales in China in 2024. In January, fueled by government subsidies, Huawei, Xiaomi, vivo, and OPPO all experienced year-over-year sales growth. Observer.com reported that Xiaomi saw a staggering 42.49% increase, while Apple was the only top-five brand to experience a decline. (Image source: Internet) High prices and lack of AI features are likely the primary reasons for iPhone sales decline. The iPhone 16 series starts at 5999, while new flagships from Xiaomi, OPPO, and vivo remain around 4500. Domestic brands have quickly integrated AI features into their products, offering capabilities ranging from mathematical reasoning and content summarization to image generation.

Now, with an expected starting price of around 4500, the iPhone SE4 is priced similarly to Android flagships. Its partnership with Alibaba and Baidu will bring Apple Intelligence to the Chinese market, addressing a crucial weakness. Other hardware shortcomings are less significant. I believe the iPhone SE4's greatest significance lies in lowering the barrier to entry for the Apple ecosystem and Apple Intelligence. The full-screen design also eliminates a major point of criticism. While shortcomings remain, they are unlikely to severely impact the iPhone SE4's success. 8GB of RAM and the A18 chip ensure years of usability, making it, combined with iOS and Apple's app ecosystem, a perfect "senior phone." The affordable price and AI capabilities of the iPhone SE4 could attract older iPhone users and some Android users.