Apple may launch a new version of its tiny, cheap iPhone from 3 years ago, and it could be just as crucial for Apple's business as the iPhone 11

REUTERS/Stephen Lam

The iPhone SE is seen on display during an event at the Apple headquarters in 2016.

• Apple is developing a new version of its low-cost iPhone SE to be released next spring, according to Nikkei Asian Review.
• The new model will reportedly feature a 4.7-inch screen like the iPhone 8 but will include the same internal components as Apple's next flagship iPhones.
• Launching a new, cheap iPhone could be crucial for Apple to compete with rivals like Huawei and Samsung as it seeks to regain lost ground in the smartphone market. Both of those companies offer mid-range smartphones, unlike Apple.
• Bringing in new iPhone users is also crucial for Apple to continue growing its wearables and services businesses.
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Apple's successors to the iPhone XS, XS Max, and XR aren't the only new smartphones the company is rumored to be working on.

The Cupertino, California-based tech giant is also readying a new version of its low-cost iPhone SE to be released next spring, according to a new report from Nikkei Asian Review.

Apple released the iPhone SE back in 2016 and hasn't launched an updated model since. It shared some features with iPhone 6S - which was Apple's flagship iPhone model at the time - such as its A9 processor and the Live Photos feature that animates images taken with the phone's camera. But unlike the iPhone 6S, the iPhone SE was priced at just $400 and came in a more compact form factor reminiscent of the iPhone 5S.

Now, Apple is reportedly planning to revive the iPhone SE in a form factor that would resemble the 4.7-inch iPhone 8. Other than its smaller design, the next-generation iPhone SE is expected to have the same internal components as the new iPhones Apple will likely debut next week, according to the report. It will also reportedly have a liquid crystal display like the $750 iPhone XR.

Read more: Ex-Apple store employees reveal the biggest mistakes customers make at the Genius Bar

It would be a smart move for Apple that could help it reclaim lost market share and boost iPhone upgrades at a time when smartphone shipments are continuing to decline globally.

Here's a closer look at why launching a new iPhone SE could be just as important for Apple as its new flagship iPhone.