How the iPhone SE will help drive Apple's sales internationally

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in iPhone
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an iPhone, but put off by the cost of higher-end models -- yet also balked at buying a device likely to become outdated quicker.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.
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Comments

  • Reply 1 of 25
    mattinozmattinoz Posts: 1,628member

    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.

    All Apple's pricing is set in US dollars and the US dollar is now recovering from historic low performance.
    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.

  • Reply 2 of 25
    JanNLJanNL Posts: 310member
    "the Chinese market. Although Apple is already doing well there, it's also one of the most expensive places to buy an iPhone"
    You know, when calculated in $, in W-Europe we pay ± $840,- for this iPhone... The only thing is the average income is higher here than in China.

    I'm sure the iPhone SE will be a very great succes, but not only because of the price.
  • Reply 3 of 25
    schlackschlack Posts: 708member
    iPhone SE in Germany is only $547
    jannl said:
    "the Chinese market. Although Apple is already doing well there, it's also one of the most expensive places to buy an iPhone"
    You know, when calculated in $, in W-Europe we pay ± $840,- for this iPhone... The only thing is the average income is higher here than in China.

    I'm sure the iPhone SE will be a very great succes, but not only because of the price.
    iPhone SE in Germany is only $547
    edited March 2016
  • Reply 4 of 25
    JanNLJanNL Posts: 310member
    schlack said:
    iPhone SE in Germany is only $547
    jannl said:
    "the Chinese market. Although Apple is already doing well there, it's also one of the most expensive places to buy an iPhone"
    You know, when calculated in $, in W-Europe we pay ± $840,- for this iPhone... The only thing is the average income is higher here than in China.

    I'm sure the iPhone SE will be a very great succes, but not only because of the price.
    iPhone SE in Germany is only $547
    My price was in relation to the mentioned 6S 16GB.
  • Reply 5 of 25
    fallenjtfallenjt Posts: 4,034member
    jannl said:
    "the Chinese market. Although Apple is already doing well there, it's also one of the most expensive places to buy an iPhone"
    You know, when calculated in $, in W-Europe we pay ± $840,- for this iPhone... The only thing is the average income is higher here than in China.

    I'm sure the iPhone SE will be a very great succes, but not only because of the price.
    Asian buyers have very different attitude vs European or American.
  • Reply 6 of 25
    China has 17% VAT on imports. So Apple products are about 20% more expensive than Apple's listing price. Given ~10% sales tax in US (California) and 0% sales tax in China, it's roughly 10% more expensive than buying in the US.
  • Reply 7 of 25
    I've already seen a number of articles stating how the iPhone SE is the beginning of the ruination of Apple. Supposedly Apple isn't doing enough to keep its iPhones ahead of the competition. Supposedly, no one wants a small display. Supposedly, Apple is cheating buyers by offering a 16GB iPhone. Supposedly, Apple is destroying all of its profit margins by offering a low cost iPhone. There are so many reasons mentioned why Tim Cook is destroying Apple it's almost unbelievable. There are so many people out there that absolutely hate Apple. Nothing Apple ever does it good enough to please the dissatisfied. It must be some sort of sickness with these people. No company is perfect and every company makes some mistakes, but they're calling this a mistake before even one iPhone SE is sold. The pre-order numbers seem pretty good, but the doubters feel this is the beginning of the end for Apple and the iPhone because the black markets can't make enough money from the new iPhone. Weird reasoning, but its par for the course for Apple. The Apple critics are pouring it on with the iPhone SE. Jeez, it's just a lower cost interim iPhone before the iPhone 7 is announced. It hardly seems like the Peak iPhone Apocalypse that some are making it out to be.
    kevin keeredgeminipachia
  • Reply 8 of 25
    profprof Posts: 78member
    This is going to be the iPhone of the year and not just because of the price. The iPhone 5S still sold tremendously despite of the rather high price. Why? Just because of the form factor! Even an iPhone 6(s) is a huge device without bringing any big advantage to the majority of users but the lack of some major features got somewhat long in the tooth... Some Android vendors are also dialling back on the Phablet craze with their latest generation devices because "Are you happy to see me or is this your latest smartphone?" just isn't funny anymore.

    Heck, the iPhone SE might even be the first iPhone ever I'll buy out of my own pocket.
  • Reply 9 of 25
    dewmedewme Posts: 3,807member
    The iPhone SE is a great phone for people who want a smaller form factor phone that will still be functionally viable for at least 5 more years. It's the perfect new phone for the many people who are still lugging around an iPhone 4s or iPhone 5. The fact that Apple included the majority of latest & greatest features from the iPhone 6s product line allows it to fill a niche better than any non-flagship phone that Apple has ever slotted into their iPhone portfolio. Excellent bang for the buck whether you have deep pockets or small pockets but still want to experience a little iOS love.

    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.
    edited March 2016 fotoformatpscooter63
  • Reply 10 of 25
    kevtkevt Posts: 195member
    I'm not really that bothered about which market it's aimed at. This is simply the iPhone that I've been hoping for - the technological advances of A9, Apple Pay, etc in the 4" form factor, and battery life to match or exceed 6S according to early tests.

    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. 
  • Reply 11 of 25
    hentaiboyhentaiboy Posts: 1,244member

    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.

    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?

  • Reply 12 of 25
    I kinda wish that they'd come out with this around the time of the 6S only because that means I could buy the version with 7 internals when my 2 yr is up. As it stands I'll be trading my 6 in and buying a 64 gig SE. Part of me wishes it had a new design, but part of me is very glad that it has the case of the 5 series since that's still an upgrade on the 6. I'm slightly scared that a 7 mini will be launched in the fall. (They've done 6 month product refreshes before) But I hope that they'll leave the 7 mini for the same time next year. If they do I suspect they'll fit the 3D touch unit in where the headphone jack goes.
  • Reply 13 of 25
    In Europe the markup ABOVE sales tax (VAT) is substantial, e.g., in Belgium with 21%VAT: $399 * 1.21 = €429, but the sales price is €489 , €60 more than it should be !!!
    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.

  • Reply 14 of 25
    19831983 Posts: 1,224member
    The SE is a great value for money proposition it'll do very well I think.
  • Reply 15 of 25
    prof said:
    This is going to be the iPhone of the year and not just because of the price. The iPhone 5S still sold tremendously despite of the rather high price. Why? Just because of the form factor! Even an iPhone 6(s) is a huge device without bringing any big advantage to the majority of users but the lack of some major features got somewhat long in the tooth... Some Android vendors are also dialling back on the Phablet craze with their latest generation devices because "Are you happy to see me or is this your latest smartphone?" just isn't funny anymore.

    Heck, the iPhone SE might even be the first iPhone ever I'll buy out of my own pocket.
    In India 5S is widley available for 250$ or less in ebay it is currently 210$ talk about price cuts and yeah nobody is stupid enough to buy SE iphone in india because they are launching it at 40000 rupees whereas the bigger and flagship 6S is available for 40000 rupees .meh
  • Reply 16 of 25

    1983 said:
    The SE is a great value for money proposition it'll do very well I think.
    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~
  • Reply 17 of 25
    fallenjtfallenjt Posts: 4,034member
    In Europe the markup ABOVE sales tax (VAT) is substantial, e.g., in Belgium with 21%VAT: $399 * 1.21 = €429, but the sales price is €489 , €60 more than it should be !!!
    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.

    Sure. Go buy Samsung. Well Samsung pricing so affordable to the world that they made no money. Why would Apple want to do that? 
    You want to look at currency exchange rate...Samsung and Huawei ain't use $ to convert but Korean and Chinese currency...
  • Reply 18 of 25
    fallenjtfallenjt Posts: 4,034member

    1983 said:
    The SE is a great value for money proposition it'll do very well I think.
    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~
    How many can you get from eBay? 3? Use your brain a little, would you?
    edited March 2016
  • Reply 19 of 25
    josujosu Posts: 217member
    jannl said:
    "the Chinese market. Although Apple is already doing well there, it's also one of the most expensive places to buy an iPhone"
    You know, when calculated in $, in W-Europe we pay ± $840,- for this iPhone... The only thing is the average income is higher here than in China.

    I'm sure the iPhone SE will be a very great succes, but not only because of the price.
    We in Spain pay for a base Porsche 911 $113.000, in the US is $89.000. So explain me that. Germany is much near Spain than US and the sales network in the Euro zone can be at least as integrated as Apple's. So please, illustrate me why in the European Union is a car made here far more expensive than in the US. So much that you can buy another (far cheaper) one with the difference.
    edited March 2016
  • Reply 20 of 25
    512ke512ke Posts: 782member
    This is the lower priced phone that most of the crybaby bloggers and "journalists" were boo hooing for Apple to make. But now that Apple is making it, the fickle baby bloggers are all complaining that Apple isn't innovating enough. It's hilarious and ridiculous. Prediction: Apple, unlike the media, knows how to run its business. This new phone will be a hit. 

    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. 


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