The iPhone 8 Plus camera’s portrait mode is fun! Here’s my dog.Nina Raja | CNBCTF Securities analyst Ming-Chi Kuo said in a note on Sunday that Apple’s new and more affordable iPhone will launch in the first quarter of next year for $399. Kuo said earlier this month that the phone, which he calls the iPhone SE2, will include the same processor that’s in the new iPhone 11.Kuo reiterated that the iPhone SE2, which succeeds the iPhone SE that launched in 2016, will have a similar design to the iPhone 8. That suggests Apple will be able to reuse parts from that phone while upgrading some of the internal components, like the processor and camera. It will launch in silver, space gray and red colors, Kuo said.Kuoi also predicted that the budget iPhone will likely attract people who are still using the iPhone 6 and 6s, which he estimates are still being used by as many as 200 million people, event though they launched five years ago. He said the phone will be a “key growth driver” for Apple next year. “iPhone 6 and 6s series are the best-selling iPhone series, and we estimate that around 170–200mn people are still using iPhone 6 and 6s series now,” Kuo said. “The iPhone 6 series users may have more urgent replacement demand for an upgraded model because iOS 13 doesn’t support iPhone 6 series.”iOS 13 is Apple’s latest iPhone software, but it doesn’t support the iPhone 6. It was released last month.