Apple sets sights smaller with new iPhone SE, same size as old 5S

Apple went small on Monday - cutting prices as well as screen size - as it unveiled a new iPhone and iPad aimed at first-time buyers and customers in emerging markets like China.

The new launches came as Apple geared up for a high-profile court battle with the US government on encryption and data protection, with chief executive Tim Cook claiming that protecting privacy is an obligation for the tech giant.

The new iPhone SE, with a 4-inch screen will debut at US$399 for US customers without a contract subsidy, a significant cut from the price of Apple’s larger iPhones. The SE’s screen is the same size as 2013’s iPhone 5S. It will be available in Hong Kong, mainland China and other markets at the end of the month.

Apple sold 30 million small-screen iPhones in 2015, company vice-president Greg Joswiak said, showing that many customers like the compact size - despite the trend toward bigger displays.

“Some people really love smaller phones,” he told the low-key event at Apple’s headquarters in Cupertino, California, unveiling the aluminium handset with upgraded specifications and other features including Apple Pay.

“In some countries like China, for a majority of these customers, it is their first iPhone.”