Apple taps new vein with iPhone SE, initial sales estimate suggests

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in iPhone
Apple's new iPhone SE isn't expected to break any sales records, but fresh data suggests the diminutive handset might have a hand in driving iPhone sales growth beyond early adopters and brand loyalists.




According to early data from research firm Slice Intelligence, first weekend iPhone SE online sales amounted to 6 percent of what Apple saw with the iPhone 6s launch in 2015, and only 3 percent of the iPhone 6 a year prior.

However, statistics show a large chunk of SE buyers skipped the recent big-screen iPhone upgrades, meaning the new model is attracting users keen on replacing their aging 4-inch iPhone 5s , as AppleInsider predicted after taking a spending some hands-on time with the device last week. Today's report notes only 35 percent of initial iPhone SE buyers bought an iPhone online in the past two years.

Perhaps more importantly, iPhone SE is stealing away Android users at a faster clip than Apple's most recent segment offerings. Specifically, some 16 percent of iPhone SE buyers were Android converts, a figure that compares favorably to a 10 percent share seen during last year's iPhone 6s launch. While sales trend data has yet to be collected and analyzed, it is speculated that SE's low price point is helping to drive potential smartphone buyers toward iOS.

Slice also points out that consumers interested in the new SE are older and less educated than the typical iPhone audience. More than one fifth of customers who purchased SE are aged 45 to 54 years old, compared to an 18 percent average for all iPhone buyers. In particular, 34- to 44-year-olds showed less interest in the 4-inch device than prior flagship models. Further, male buyers accounted for 77 percent of SE's online launch sales, compared to 69 percent overall.

The research firm draws samples from a panel of over 4 million online shoppers.

Apple has yet to release official first weekend iPhone SE sales figures, but a report on Monday claims preorders have surpassed 3.4 million units in China alone. If accurate, the performance bodes well for Apple's updated iPhone model, as the device is believed to address -- or generate -- demand in emerging markets.
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Comments

  • Reply 1 of 23
    bobschlobbobschlob Posts: 1,074member
    Wish I could understand why almost every single story I read here about this phone feels like it is some sort of apology or some sort of 'excuse' for it's size?
    How come nobody gripes when Apple makes a smaller laptop?
    baconstangdesignrpotatoleeksoupaylkicoco3
  • Reply 2 of 23
    It seems all the full featured Android phones I've seen are quite large.  The compact form factor of the SE is probably attracting Android users looking for something powerful but pocketable.
    blurlabscornchipicoco3cali
  • Reply 3 of 23
    NY1822NY1822 Posts: 621member
    now we are comparing demographic percentages from a few days of pre order VS all of iPhone purchases....just over 1/5 vs 18%...lol
    guess they have to write something
    edited March 2016
  • Reply 4 of 23
    foggyhillfoggyhill Posts: 4,767member
    Early adopters, for smartphones?
    By this time, if you don't have a smart phone, you're a laggard (in the tech adoption curve)

    You may get people looking for something better than a basic crap Android phone though,who would never buy a high end phone.
    blurlabsration alcornchip
  • Reply 5 of 23
    Now that I have an Apple Watch I like the idea of a smaller iPhone - I just don't pull it out as much!!! great photos and great batter life now - how can it go wrong.
    bobschlobbaconstangcornchipcali
  • Reply 6 of 23
    designrdesignr Posts: 617member
    Diminutive? Seriously? Have words ceased to have meanings?

    edited March 2016 cornchipirelandfastasleep
  • Reply 7 of 23
    designrdesignr Posts: 617member
    blurlabs said:
    Now that I have an Apple Watch I like the idea of a smaller iPhone - I just don't pull it out as much!!! great photos and great batter life now - how can it go wrong.
    Interesting. I expected the Watch would lead to wider use of the larger phone for that same reason: It needn't be pulled out as often, it just needed to be nearby (pocket, purse, backpack, etc.)
  • Reply 8 of 23
    designr said:
    Diminutive? Seriously? Have words ceased to have meanings?

    diminutive |diˈminyətiv|
    adjective
    extremely or unusually small a diminutive figure dressed in black. See note at small .• (of a word, name, or suffix) implying smallness, either actual or imputed in token of affection, scorn, etc., (e.g.,teeny, -let, -kins)

    Seems appropriate considering the dominance of Android phablet market share.
  • Reply 9 of 23
    eideardeideard Posts: 427member
    "considering the dominance of Android phablet market share" - if you live in the world of Walmart.  

    Still driving a Chevy Malibu?
  • Reply 10 of 23
    There have to be consumers still out there who only need a smartphone that mostly makes phone calls. It's like these prophetic geniuses who criticize Apple know everything about everyone's needs. Of all the people in the world using smartphones there have to be some group that has a use for the iPhone SE. I'm sure Apple must take some surveys from consumers saying what they would like. Larger display smartphones are very nice but I'm sure there have to be users out there who would prefer a smaller smartphone that's somewhat powerful. Why is Apple being criticized for this? Because it's Apple and everything Apple does is supposedly always going to be a bad decision or something. It's really so stupid. How can anyone really tell what the size of a market is going to be before even one unit is sold? The know-it-all geniuses were terribly wrong about the iPod, iPad and iPhone market. There always seems to be this idea that Apple doesn't know what it is doing. Sure, they could be wrong. No company is perfect in knowing a consumer market but in the last ten years Apple has had more hits than misses. People need to wait and see how Apple does with the iPhone SE. Jeez. Investors think Tesla vehicles will be flying out of the factory being bought by tens of thousands of eager buyers, but yet they think the iPhone SE is going to be a sales failure. Such weird thinking.
    fotoformatbaconstangcali
  • Reply 11 of 23
    Today's report notes only 35 percent of initial iPhone SE buyers bought an iPhone online in the past two years.


    So... 35% of people bought an iPhone SE while probably still on contract with an existing iPhone?
  • Reply 12 of 23
    19831983 Posts: 1,224member
    'Older and less educated' what people over 45 are less educated? What a crock!
    baconstang
  • Reply 13 of 23
    1983 said:
    'Older and less educated' what people over 45 are less educated? What a crock!
    You know.  College dropouts like Jobs and Gates.
    ireland
  • Reply 14 of 23
    I know these polls are junk. My coworker recently upgraded to a 6S plus and just didn't get the smaller 6S to replace his iPhone 4S. His is going retire in two months and told me why the hell would he stick will a small display he has trouble seeing. Another older 60+ coworker didn't want an iPhone because the display again was too small.
  • Reply 15 of 23
    1983 said:
    'Older and less educated' what people over 45 are less educated? What a crock!
    Sorry but your making a perfect example of your comment. I read that statement as showing two different groups not one. Plus if you actually go to the source site there are two charts showing Age group AND Education groups. There were a lower percentage of college degree holders buying the SE. 
  • Reply 16 of 23
    saareksaarek Posts: 1,321member
    So they reckon the SE only sold around 300,000 units in the weekend compared to the 10M units for the iPhone 6? Sounds way too low to me

    Based on Apple's figures they were selling roughly 2.5M 4" iPhones a month before the release of the SE.....
    baconstang
  • Reply 17 of 23
    irelandireland Posts: 17,751member
    My theory that women prefer larger phones holds up. I certainly prefer a smaller phone.
  • Reply 18 of 23
    irelandireland Posts: 17,751member
    There have to be consumers still out there who only need a smartphone that mostly makes phone calls. It's like these prophetic geniuses who criticize Apple know everything about everyone's needs. Of all the people in the world using smartphones there have to be some group that has a use for the iPhone SE. I'm sure Apple must take some surveys from consumers saying what they would like. Larger display smartphones are very nice but I'm sure there have to be users out there who would prefer a smaller smartphone that's somewhat powerful. Why is Apple being criticized for this?
    Criticised by whom? Android users in YouTube comments? They're not even normal people. They aren't regular Android users. They are weitdos of a certain maturity who constantly live to abuse in the comments of Apple videos. It's clear some of them watch more Apple videos than Android videos.
    edited March 2016 cali
  • Reply 19 of 23
    I've ordered mine, with the death of Sony's Xperia Z line and with it the Z compact it means the iPhone SE is the only regular sized phone with decent specs on the market (Sony were the last Android company making regular sized phones with decent specs, and Microsoft hasn't made one since 2013).
  • Reply 20 of 23
    radarthekatradarthekat Posts: 3,394moderator
    Lost in all the critiquing and ongoing second-guessing of everything Apple is the fact that Apple almost casually creates multi-billion dollar products that would be the envy of any company on the planet.

    With an average selling price of $399 and estimated incremental sales of 17 million units, the iPhone SE would generate $6.9 billion in additional revenue for Apple.  According to J.P. Morgan analyst Rod Hall, a conservative gross margin estimate of 40% would generate $2.8 billion in incremental profit for 2016.

    Imagine all the science, investment, patient trials and risk it takes to create a $7 billion/year new drug in the hit or miss biotech industry.  Just a routine product refresh for Apple.
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