The iPhone SE refresh is set to bring a modern upgrade with Face ID, Apple Intelligence, and more advanced features. Apple/CNET

Apple is gearing up to refresh its budget-friendly iPhone SE, with an unveiling expected as early as this week. Rather than hosting a flashy event, the company is reportedly opting for a quieter online launch, signaling a more streamlined approach to rolling out its updated entry-level device, according to Bloomberg. Now, we're just two days away from the big event, so it's nearly time to see what's in store. 

This next-generation iPhone SE -- internally dubbed the V59 -- marks a major step forward for Apple's most affordable phone. The upgrade is rumored to introduce Apple's first in-house cellular modem, replacing Qualcomm's technology, and bring Face ID to the SE lineup for the first time, finally eliminating the physical home button. Powered by the A18 chip, the same processor expected in the upcoming iPhone 16, the device is also set to support Apple's AI-powered software suite, Apple Intelligence, making it the most advanced SE model yet.

With these updates, Apple is positioning the SE as a more compelling option for users looking for premium features at a lower price while expanding its reach to those who haven't yet switched to an iPhone.

Bloomberg noted inventory levels for the current iPhone SE have decreased in stores, potentially hinting a product refresh may be imminent. Some versions are still available online, but others don't ship until March.

A representative for Apple did not immediately respond to a request for comment.

The update comes at a time when Apple recently reported a 1% dip in iPhone sales during the holiday quarter, failing to meet expectations. A more advanced yet still affordable iPhone SE could help Apple compete in key markets such as China and India, where budget-friendly smartphones with premium features continue to gain traction.

The iPhone SE currently starts at $429, significantly less than the $799 entry price for an iPhone 16.