KGI Securities analyst Ming-Chi Kuo, who is widely regarded as the most trusted Apple analyst, has revealed in a report that the Cupertino-based tech giant has decided to cancel the scheduled upgrade of its latest flagship smartphone.

Kuo said that Apple has decided not to release an upgraded version of the iPhone SE, according to Forbes. Much like in the past, Apple usually releases a more affordable version of the iPhone using the SE brand. The smaller iPhone SE, since its release, has been a surprise hit both commercially and critically.

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Kuo explained Apple's decision not to release an Apple SE based on the iPhone 7. The analyst provided two key reasons. First being: "To increase margins on the 2016 iPhone SE as its older components reduce in price."

The second reason that Kuo pointed out is: "To reduce risk of cannibalization that a 2017 iPhone SE could have on sales of the more profitable iPhone 7."

Apple is well known to focus more on profit, rather than expanding its market share.

According to Mac Rumors, Kuo predicted that iPhone's shipment volume will drop year-over-year in the second quarter of 2017. Kuo predicts that Apple's shipment would drop to around 35 to 40 million units, compared to 40.4 million units shipped during the second quarter of this year.

Kuo also pointed out that Apple's decision to cancel the 2017 iPhone SE will have serious implications on the company's sales figures. Especially since customers are more inclined to pick up the company's budget model rather than spending more money on the premium one.

Kuo has a reputation for accurately predicting Apple news. In the last 18 months, he was able to correctly predict the iPhone 7's features and major iPhone 6S features.

Tagsapple, iPhone, iPhone SE, kgi securities, Ming-Chi Kuo, Apple iPhone SE, 2017 iphone se