Investment bank Morgan Stanley suggests that the iPhone SE 4, expected to debut in March 2025, could be the game-changer that helps Apple Intelligence gain widespread adoption. The bank previously reported lower-than-expected sales for the iPhone 16 series but notes that supply chain checks show no reductions in production orders, indicating stable demand.
Morgan Stanley highlights that while iPhone 16 Pro and iPhone 16 Pro Max are selling well, the shorter lead times for these models are due to improved supply conditions rather than sluggish demand. However, they believe the iPhone SE 4 will be Apple's major "volume play" in 2025, expecting it to cater to the low-end smartphone market and play a pivotal role in popularizing Apple Intelligence.
This forecast aligns with recent rumors that the iPhone SE 4 will support Apple's next-generation AI features. With the device offering Apple Intelligence at a more affordable price point than legacy iPhone models, Morgan Stanley predicts sales of 15 to 20 million units. This is a significant increase from their earlier estimate of 15 million units, driven by the iPhone SE 4's potential to bring AI capabilities to a wider audience.
Morgan Stanley’s analysts believe that this combination of Apple Intelligence and affordability will make the iPhone SE 4 an attractive alternative to older, pricier iPhone models that lack AI support, solidifying its place in the competitive smartphone landscape.