Oct 1 (Reuters) - Apple ( AAPL ) is close to starting

production of an updated iPhone SE that will serve as a new

low-end model and is also aiming to manufacture new iPad Air

models, Bloomberg News reported on Tuesday, citing people

familiar with the matter.

The refreshed Apple ( AAPL ) products are expected to be released

early next year, the report said.

This marks the first update to the iPhone SE since 2022 when

Apple ( AAPL ) added 5G and a faster A15 Bionic chip to the model. The

model helps the company to better compete with industry leaders

Samsung, Xiaomi and others in the mid-range smartphone market.

Apple ( AAPL ) did not immediately respond to a Reuters request for

comment.

The iPhone SE is generally considered the cheapest model

from the iPhone series with prices starting from $429.

The new iPad Air models - codenamed J607 and J637 - will

focus on internal improvements, the report said, adding that the

company is also preparing an updated version of its Magic

Keyboard accessory, codenamed R307 and R308, for both the

11-inch and 13-inch versions of the new Air.

The new SE phone is expected to support the company's AI

software, Apple Intelligence, the report added.

Early in September

, Apple ( AAPL ) unveiled its long-awaited AI powered iPhone 16

models which promised improvements in its Siri personal

assistant as well as enhancing features such as understanding

and identifying objects captured by the phone camera.