On March 21st, Apple announced a smaller 9.7 inch iPad Pro model, a price drop for Apple Watch and new nylon bands, and most importantly, their latest smartphone: the iPhone SE. While the iPhone 6 and 6+ represented the largest phones in Apple history, Apple elected to go smaller with their latest release. The iPhone SE is the size of an iPhone 5 with the processor of an iPhone 6, essentially recycling the aesthetic design of the iPhone with the speed of an iPhone 6.

When it comes to smartphones, screen size matters. Statistics show over half of YouTube views come from mobile devices and the average YouTube session lasts for over 40 minutes. Although people are watching more video than ever on their phones, it doesn’t mean bigger is always better. Many scorned the iPhone 6+ for being too large and clunky. The iPhone SE represents a more affordable option with all the processing power of an iPhone 6 on a smaller screen.

When it comes to specs, the iPhone SE is no slouch. The iPhone SE screen measures at 4.87 x 2.31 x .30 inches, the exact same dimensions as the iPhone 5. Like the iPhone 6, the iPhone SE has retina display. The phone has an A8 chip with 64-bit architecture and an M8 motion coprocessor, like the iPhone 6. While the iPhone 6 has 1334 x 750 pixels (326 PPI), iPhone SE has slightly fewer with 1136 x 640 pixels. The SE’s rear camera is identical to the iPhone 6. The one area in which the SE exceeds the iPhone 6 is in battery life: iPhone SE has 1642 mAh while iPhone 6S has 1715. The SE’s smaller, lower-resolution display ensures users will receive 20% longer 3G internet surfing time on the SE, 30% more 4G, and 20% longer when watching video.

Check out this awesome video review of the iPhone SE by The Verge:

Apple is expected to announce the iPhone 7 in 2017. Techies expect the iPhone 7 to be a major advancement in the Apple lineage. With a large announcement looming, the iPhone SE is designed to diversify their product line with a cost-friendly option to hold Apple lovers over and combat the probability that iPhone sales will decline for the first time in company history in 2016.

At $399 without a contract, Apple seems to be aiming to take a bite out of the cost-friendly Android market. Although the average price for an Android smartphone was about $215 at the end of 2015, the difference may entice those drawn by the allure of Apple products.

Last year, Apple took a big bite out of China. In the 4th Quarter of 2015, iPhone sales grew 33% in China. Having recently lost their crown as largest smartphone vendor in China to Xiaomi, the Chinese market represents a major area of potential growth for Apple. Affordable options with premium processing power have the potential to eat into Android’s sales in rural and urban Chinese markets.

The move to more affordable iPhones began with the iPhone 5c; however, supply chain problems taught Apple that using new material can produce unforeseen difficulties. Foxconn announced that the iPhone 5 was the most difficult device they have ever assembled. By recycling iPhone 5 design, materials, and supply chain, iPhone SE is a much cheaper product to create and manufacture.

Some argue that smartphone UX has not advanced with screen-size and few phones have UX features specifically designed for large-screen devices. Whether or not this influenced Apple’s decision to downsize, the affordability, overseas sales potential, and diversified design certainly make the iPhone SE an attractive device for the company. The question now becomes: will Apple unveil a larger iPhone 7 in 2017 with groundbreaking large-screen UX? We’ll have to wait and see.