I don’t think the market for the iPhone SE is very big, but I bet it’s bigger than Apple thought it would be a couple of years ago. I know many SE users are devoted to having the most compact smartphone they can, and I think Apple should continue to serve that market.
If Apple does announce an iPhone SE 2 this spring, my wife will be first in line to purchase on day one. She’s a huge fan of the compact form factor and prefers the less-slippery, harder edges of the 5S-era design. And of course, having a smartphone that actually fits in her jeans pocket is a plus.
In terms of what to expect in such a device, I’m thinking an A10 Fusion chip, a glass back for wireless charging, and the single-lens camera system from the iPhone 7.