A technology analyst says Apple does not have the capacity to make the highly-rumored SE 2 this year.

Even before 2017 wrapped up, there were already strong rumors that Apple was preparing a second generation low-budget SE phone for 2018. However, KGI Securities analyst Ming-Chi Kuo said in a research note published by Mac Rumors that this might not be happening.

According to Kuo, Apple does not have spare development resources to be able to create a new SE unit this year, considering the tech giant is already working on releasing three new phones for 2018 — an iPhone X2 with a much different design, a 6.5-inch iPhone X Plus, and a low-range 6.1-inch iPhone with the Face ID features.

"With three new models in the pipeline for the second half of 2018, we believe Apple may have used up its development resources," Kuo wrote.

The analyst also noted how Apple saw delays in the shipment of iPhone X last year, after the company endeavored to release three different units — iPhone 8, iPhone 8 Plus and iPhone X — in just one year. Kuo said Apple does not want to repeat the same mistakes. Still, he does not want to totally rule out an SE 2 unit. After all, analysts have been wrong with their predictions in the past.

It was earlier rumored that the upcoming SE 2 will sport an all-glass back, along with other minor improvements to the first generation SE iPhone. This should allow wireless charging, just like the other previously released iPhone models.

Kuo, however, said that if Apple was really to release SE 2 units this year, there would be very slight alterations to its physical appearance. Consumers should then say goodbye to any dreams of wireless charging or Face ID with SE 2, although it would possible feature a faster processor at a much lower price.