Apple's next budget-friendly iPhone, a rumoured new iPhone SE, could be a game-changer, as it could potentially feature Apple Intelligence - the company's signature on-device AI suite - according to Apple analyst Mark Gurman in a recent report on Bloomberg News. 

As per Gurman, while the next lineup of iPhones, the iPhone 16 and its Pro and Max versions, are expected to be announced around September this year, Apple is expected to release a brand new, budget-friendly iPhone SE, as early as the beginning of 2025. This will mark the first upgrade to the company's low-end SE lineup since 2022.

Gurman describes in his report that the new iPhone SE, currently lacking a given name, will look like an iPhone 14, and will come with a OLED display that fully stretches across the device. Also, interestingly, this budget-friendly iPhone will have Apple Intelligence, which until now, has only been exclusive to the super high-end iPhone 15 Pro models.

It is expected that the inclusion of Apple Intelligence on the new low-end iPhone SE could significantly blur the line between budget and premium smartphones. Coupled with the design chance and advanced AI capabilities, this could make the SE a far more compelling option for consumers seeking a balance of performance and affordability.

While the iPhone 16 is expected to offer additional features like dual cameras and the action button, these enhancements might not be deal-breakers for the average user. If the iPhone SE can deliver a near-flagship experience in terms of performance and design, it could force consumers to reconsider their priorities when choosing an iPhone.

Ultimately, the success of the next iPhone SE will depend on its pricing, which Gurman suggests that Apple should keep under the low $500 price tag, though he cannot yet state what the expected price for this phone would be. Nonetheless, if Apple can maintain its competitive edge in the budget segment while offering flagship-level performance and features, the rumoured new iPhone SE could redefine what's possible in the affordable smartphone market.