How the iPhone SE will help drive Apple's sales internationally
Arguably, the new iPhone SE is aimed less at Apple's U.S. home than the international market, where such a device has been a long time coming. Apple's next-gen 4-inch should perform well as standalone model, drawing overseas customers into the sticky iOS ecosystem.
The key factor, of course, is the device's price-to-performance ratio. The SE is the first "budget" iPhone to offer a top-of-the-line processor and camera. As long as you're willing to sacrifice screen space, and 3D Touch, you get largely the same features as an iPhone 6s for $250 less.
Apple has had budget iPhones before, of course, but only in the form of older models it kept on sale. Even the iPhone 5c was essentially an iPhone 5 in a plastic shell, minor internal improvements aside. A better tradeoff could allow Apple to tempt people who were previously considering an iPhone, but put off by the cost of higher-end models -- yet also balked at buying a device likely to become outdated quicker. For many people, it might not make much sense to buy a two-year-old iPhone when they can can get a modern Android device for the same cost.
The iPhone SE could be particularly geared toward capturing more of the Chinese market. Although Apple is already doing well there, it's also one of the most expensive places to buy an iPhone: a 16-gigabyte iPhone 6s costs the equivalent of $815, $166 more than in the U.S.
The SE by contrast starts at the equivalent of $507. That is still a lot, but easier to swallow for the middle-class shoppers Apple needs to remain a major player in the region. In the next few years, China is set to eclipse the U.S. in terms of the company's revenue.
Indeed, the SE already seems to be popular in China, at least if early estimates are to be believed. A report on Monday suggested that at least 3.4 million units have been preordered from retailers.
Apple may have a tougher sell in countries like India, where until early this year it was still offering the iPhone 4S and 5c due to price competition. A new SE will probably remain out of reach for most Indians, but could capture more marketshare regardless, especially once used or older units hit the market.
The SE could even help in markets like Canada, Europe, and Australia, which while richer than most are nevertheless impacted by the higher prices Apple charges outside the U.S.
The real proof of whether or not Apple made a smart decision will begin on March 31 -- when the iPhone SE goes on sale in 13 territories around the world.
The key factor, of course, is the device's price-to-performance ratio. The SE is the first "budget" iPhone to offer a top-of-the-line processor and camera. As long as you're willing to sacrifice screen space, and 3D Touch, you get largely the same features as an iPhone 6s for $250 less.
Apple has had budget iPhones before, of course, but only in the form of older models it kept on sale. Even the iPhone 5c was essentially an iPhone 5 in a plastic shell, minor internal improvements aside. A better tradeoff could allow Apple to tempt people who were previously considering an iPhone, but put off by the cost of higher-end models -- yet also balked at buying a device likely to become outdated quicker. For many people, it might not make much sense to buy a two-year-old iPhone when they can can get a modern Android device for the same cost.
The iPhone SE could be particularly geared toward capturing more of the Chinese market. Although Apple is already doing well there, it's also one of the most expensive places to buy an iPhone: a 16-gigabyte iPhone 6s costs the equivalent of $815, $166 more than in the U.S.
The SE by contrast starts at the equivalent of $507. That is still a lot, but easier to swallow for the middle-class shoppers Apple needs to remain a major player in the region. In the next few years, China is set to eclipse the U.S. in terms of the company's revenue.
Indeed, the SE already seems to be popular in China, at least if early estimates are to be believed. A report on Monday suggested that at least 3.4 million units have been preordered from retailers.
Apple may have a tougher sell in countries like India, where until early this year it was still offering the iPhone 4S and 5c due to price competition. A new SE will probably remain out of reach for most Indians, but could capture more marketshare regardless, especially once used or older units hit the market.
The SE could even help in markets like Canada, Europe, and Australia, which while richer than most are nevertheless impacted by the higher prices Apple charges outside the U.S.
The real proof of whether or not Apple made a smart decision will begin on March 31 -- when the iPhone SE goes on sale in 13 territories around the world.
Comments
Apple's prices outside the US are pretty formulaic. You can take off the sales taxes then calculate Apple's punt at the long term currency price . The only chestnut is they always round-up to nice local prices.
I'd think we are going to see across the board drops on all products at the next refresh so that Apple can hold their prices reasonably steady internationally. Could also explain why storage tiers went up in price. That way they can keep the lowest tier price close to the normal international base price while the top tier remains the same US dollar price.
I'm sure the iPhone SE will be a very great succes, but not only because of the price.
Heck, the iPhone SE might even be the first iPhone ever I'll buy out of my own pocket.
I'd say we're more than a few years beyond getting caught up in emotionally charged rhetoric about what constitutes a "great phone" in one person's eyes while trying to justify why everyone who doesn't agree with our perspective must be totally whacked. Tired, worn, misused, boring, and worthless perspectives that don't hold any water when you have Apple covering all the bases with great products that fit nearly everyone's needs, big or small, and in a perfect shade of gray, white, gold, or pink. If Apple doesn't offer an iPhone version that brings a smile, there are plenty of other vendors clamoring for your hard earned smartphone cash. Pick one and get on with your life.
The only significant omission is 3D touch which I hardly use, and given that it adds 0.2m thickness to the device I'd rather not have it at the moment. The fact it's well priced at £439 (64Gb in the UK) is a bonus - I'd have shelled out more.
One 6S to be sold or passed on to family.
Nope we're $crewed here in Australia again.
iPhone SE 16GB = A$679 (US$513). Includes 10% GST but the price should be the same as the iPad Air 2 @ A$599 right?
Note that any import taxes are from China, not from the US, so the situation is very similar for the US and Europe.
Compare that to a US state with 10%sales tax: $399*1.10 = $429 = €382 (or a US out-of-state on-line buyer: $399 = €355)
In practice, that's approx. 28% more expensive than for a US buyer (or 38% on-line).
I am sure Samsung, Huawei et al. don't do this.
Hardly a way to boost sales, a competitive disadvantage instead.
Hello, Apple, wake up? Times have changed since the original introduction of the iPhone, when there were no competitors.
CHeck out this iphone 6S availible on ebay with full warrranty at 550$ in india who is going to buy that more expensive shitty SE http://www.ebay.in/itm/Apple-iPhone-6S-Rose-Gold-16-GB-/322054408199?hash=item4afbf04807:g:QK4AAOSwLpdW-Kv~
You want to look at currency exchange rate...Samsung and Huawei ain't use $ to convert but Korean and Chinese currency...
Also remember how every single reporter trounced the iPhone 5 AND the 5C claiming that both were flops. The only thing you can be sure about is that the Katy Hubristies of this world are gonna be wrong wrong wrong lol.