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Apple AAPL.O is set to begin production of an updated iPhone SE that will serve as a new low-end model and also aims to make new iPad Air models, Bloomberg News reported Tuesday, citing people familiar with the subject.
New Apple products are expected to be released early next year, according to the report.
This is the first update to the iPhone SE since 2022, when Apple added 5G and a faster A15 Bionic chip to the model. This model allows the company to better compete with industry leaders Samsung, Xiaomi and others in the mid-range smartphone market.
Apple did not immediately respond to a Reuters request for comment.
The iPhone SE is generally considered the cheapest model in the iPhone lineup, with prices starting at $429.
The new iPad Air models – codenamed J607 and J637 – will focus on internal improvements, the report said, adding that the company is also preparing an updated version of its Magic Keyboard accessory, codenamed R307 and R308, for the 11-inch and 13-inch versions of the new Air.
The new SE phone is expected to support the company’s artificial intelligence software, Apple Intelligence, the report added.
Earlier in September, Apple revealed its highly anticipated AI-powered iPhone 16 models, which promised improvements to the Siri personal assistant as well as features like understanding and identifying objects captured by the phone camera.