iPhone SE reportedly 'squeezing' marketshare from Chinese smartphone makers

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in iPhone
Chinese and Taiwanese smartphone suppliers are reportedly scaling back component production in the wake of Apple's iPhone SE, which appears to be impacting the sales of local smartphone brands.




Phones from Huawei, Xiaomi, Vivo, and Oppo have lost marketshare, supply chain sources told DigiTimes on Thursday. Though the iPhone was already a relatively popular device in China prior to the SE, the new model is allegedly gaining ground as a more price-competitive alternative to the iPhone 6s.

Whereas the cheapest 6s starts at 5,288 yuan, or roughly $816, a 16-gigabyte SE is 3,288 yuan -- about $507.

Camera module suppliers were stockpiling inventory during 2015, based on optimistic prospects by smartphone makers, the sources added. This created a serious problem, as most makers ended up meeting only 70 to 80 percent of their projected shipments. In consequence, camera suppliers have supposedly become conservative about more recent attempts to launch phones with twin lenses.

Separately, the sources noted that Apple has also left suppliers with excess inventory by switching its power supplies from 15 to 20 volts. Further trouble could arise through its requests for new power management circuitry to match, the people said.

Initial demand for the SE has reportedly been fairly strong, even if sales might not compensate for an alleged slump with the iPhone 6s.
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Comments

  • Reply 1 of 55
    apple ][apple ][ Posts: 8,650member

    For a phone that was reportedly a huge flop, according to various douchebags, it seems to be doing quite well, considering that it is even "squeezing" marketshare from other makers.


    I've actually been trying to buy one from an Apple store, and it's out of stock everywhere. I've been checking the stock at nearby Apple stores every day, and I'm going to buy one, as soon as it's available. Not bad for a phone that isn't selling well, according to various douchebags, liars and spreaders of anti-Apple propaganda.


    Apple to cut iPhone SE production due to sales slump

    http://www.thehindu.com/sci-tech/technology/gadgets/apple-to-cut-iphone-se-production-due-to-sales-slump/article8483650.ece

    iPhone SE Sales Forecasted as 'Lackluster' Over First Weekend


    http://www.macrumors.com/2016/04/04/iphone-se-sales-first-weekend-lackluster-forecast/

    iPhone SE seen getting off to a ‘lackluster’ start


    http://bgr.com/2016/04/04/iphone-se-sales-lackluster/

    4-Inch iPhone SE Is Not So Hot After All: First Weekend Sales Reportedly Lackluster


    http://www.techtimes.com/articles/147386/20160406/4-inch-iphone-se-is-not-so-hot-after-all-first-weekend-sales-reportedly-lackluster.htm

    The Apple iPhone SE launch was far from divine


    http://www.cnet.com/news/the-apple-iphone-se-launch-was-far-from-divine/
    edited April 2016 baconstangradarthekatrhinotuffcornchipicoco3juanm105badmonk
  • Reply 2 of 55
    talexytalexy Posts: 57member
    sog35 said:
    Good job Apple.

    With the SE there is a great new iPhone for $399.

    Now Apple needs to get iOS on phones from $100-$300. To do that they should license iOS light version to selected manufacters.

    If Apple plays its cards right it can get 50% market share of the smartphone market.

    Apple should charge the greater of $20 or 15% license fee per phone. They could probably sell 600,000,000 licensed phones a year.

    600,000,000 x $30 license fee = $18 billion in almost pure profit
    Ok, this is parody, right?
    sockrolidbaconstangcintosrhinotuffmagman1979nolamacguybrakkenfastasleepcornchipSpamSandwich
  • Reply 3 of 55
    bobschlobbobschlob Posts: 1,074member
    sog35 said:
    Good job Apple.

    With the SE there is a great new iPhone for $399.

    Now Apple needs to get iOS on phones from $100-$300. To do that they should license iOS light version to selected manufacters.

    If Apple plays its cards right it can get 50% market share of the smartphone market.

    Apple should charge the greater of $20 or 15% license fee per phone. They could probably sell 600,000,000 licensed phones a year.

    600,000,000 x $30 license fee = $18 billion in almost pure profit
    I don't see your number for iPhone sales losses in there (you know... "hardware"; where Apple actually makes it's money?)
    singularitybaconstangrhinotuffnolamacguybrakkenfastasleepSpamSandwich
  • Reply 4 of 55
    gatorguygatorguy Posts: 20,588member
    Digitimes. 
    SpamSandwich
  • Reply 5 of 55
    sockrolidsockrolid Posts: 2,788member
    ... Though the iPhone was already a relatively popular device in China prior to the SE, the new model is allegedly gaining ground as a more price-competitive alternative to the iPhone 6s. ...
    If Apple really wanted to, I suppose they could sell this year's SE models at a $100 discount next year.
    But I doubt it.  I think they'll just keep putting each year's latest internals in the 4" shell.

    baconstangradarthekaticoco3
  • Reply 6 of 55
    gatorguy said:
    Digitimes. 

    Gatorguy.
    nolamacguypscooter63cornchippalomine
  • Reply 7 of 55
    cnocbuicnocbui Posts: 3,613member
    I'll believe this when there are actual SE sales numbers that are high enough to justify such a conclusion.

    The pre-orders for the Samsung S7 were 3 times higher than those for the SE, so in the absence of any actual sales numbers, it would be more reasonable to suggest the S7 was the cause of the falls.

    The S7 is even selling well in India, with sales double that of the S6 for the same interval.

    Retail channels said Samsung has sold over 60,000 S7 models within a month of launch - roughly twice the number of its predecessor S6 in the same time. Analysts said the strong initial demand could well put Samsung in the lead in the April-June quarter in the premium segment, outpacing current leader Apple Inc.

    Cupertino-based Apple, which held the No 1 spot in the October-December quarter, launches a smaller screen rival, iPhone SE, on April 8, but that hasn't generated any buzz among consumers, retailers told ET.

    "We believe S7 series, in the April-June quarter, will help Samsung strengthen and occupy pole-position in the Indian premium smartphone market, looking into the seasonality cycle of iPhone 6s series and lukewarm response to new Apple iPhone SE," said Tarun Pathak, senior analyst at Counterpoint Research.


    Apple’s new iPhone SE gets lukewarm response in Beijing
    http://gbtimes.com/business/apples-new-iphone-se-gets-lukewarm-response-beijing

    The iPhone SE is Apple's cheapest smartphone ever, making it ostensibly the best way for the company to win over new customers in emerging markets.

    In China, the world's largest smartphone market, the strategy is paying off -- but not tremendously well. The device has racked up 3.4 million preorders since it was announced last week, CNBC reports. Not a bad number, but not groundbreaking either.

    The figure, based on data from major online retailers in the company, doesn't necessarily mean Apple will sell 3.4 million iPhone SEs when the phone goes on sale March 31. Retailers in China rarely allow citizens to put money down on a product ahead of its release, so "preorders" are actually more like reservations and don't require any financial commitment.

    Still, it's an early measure of the interest a product has garnered in the country. For a point of reference, Xiaomi said preorders for its Mi 5, which launched earlier this month, exceeded 16 million.

    "Initial interest for the iPhone SE is lukewarm," said Neil Shah, research director of Counterpoint Research. 

    He added that the company expects the smartphone to cover "less than 10 percent of the total iPhone sales in China this year."

    Still, reports said that it's too early to define the smartphone's popularity in China. In comparison, TalkingData's study showed that Xiaomi's Mi5 pre-order sale reached more than 16 million earlier this month while Apple's 6S and 6S Plus sold about 7.2 million units in two weeks time.




    edited April 2016
  • Reply 8 of 55
    bobschlobbobschlob Posts: 1,074member
    sog35 said:
    bobschlob said:
    I don't see your number for iPhone sales losses in there (you know... "hardware"; where Apple actually makes it's money?)
    Apple will lose very few iPhone sales. Maybe a few million here or there. Most of the current iPhone users will not buy a $100-$300 Sony phone with iOS light loaded on it. But even if they do lose a few million iPhone sales Apple will make much more profit from the 600 million additional iOS users they gain plus $18 billion in licensing fees.

    The key is not to license iOS light to phones that are high end. Only $100-$300 phones. Many who buy those cheaper phones have no possible way to buy $600-$900 iPhones anyway. I think its a win win for Apple. The only one that losses is Android and Google.

    The way I see it is two options:

    Apple does not license iOS:
    Sell 250 million iPhones
    $40 billion in iPhone profit

    Apple license iOS light:
    Get $30 royalties on 600 million phones
    Sell 230 million iPhones
    $36 billion in iPhone profits
    $18 billion on royalties profits 
    $3 billion on additional services revenue from additional users
    Total $57 billion in profit

    Apple is losing out on profiting on the $100-$300 price point which makes up over a billion units a year.


    "The way I see it is two options".
    You're not seeing very far.
    magman1979nolamacguybrakkenration alicoco3SpamSandwich
  • Reply 9 of 55
    cnocbui said:
    I'll believe this when there are actual SE sales numbers that are high enough to justify such a conclusion.

    The pre-orders for the Samsung S7 were 3 times higher than those for the SE, so in the absence of any actual sales numbers, it would be more reasonable to suggest the S7 was the cause of the falls.

    The S7 is even selling well in India, with sales double that of the S6 for the same interval.

    Retail channels said Samsung has sold over 60,000 S7 models within a month of launch - roughly twice the number of its predecessor S6 in the same time. Analysts said the strong initial demand could well put Samsung in the lead in the April-June quarter in the premium segment, outpacing current leader Apple Inc.

    Cupertino-based Apple, which held the No 1 spot in the October-December quarter, launches a smaller screen rival, iPhone SE, on April 8, but that hasn't generated any buzz among consumers, retailers told ET.

    "We believe S7 series, in the April-June quarter, will help Samsung strengthen and occupy pole-position in the Indian premium smartphone market, looking into the seasonality cycle of iPhone 6s series and lukewarm response to new Apple iPhone SE," said Tarun Pathak, senior analyst at Counterpoint Research.


    http://gbtimes.com/business/apples-new-iphone-se-gets-lukewarm-response-beijing








    Let me see if I get this straight.

    First you state you'll believe it when there are "actual SE sales numbers".

    Then you go on to say the S7 had 3X the pre-orders of the SE.

    Am I the only one who finds this odd?
    baconstangrhinotuffmagman1979nolamacguybrakkenbestkeptsecretSpamSandwichpalominejuanm105badmonk
  • Reply 10 of 55
    cnocbuicnocbui Posts: 3,613member

    Let me see if I get this straight.

    First you state you'll believe it when there are "actual SE sales numbers".

    Then you go on to say the S7 had 3X the pre-orders of the SE.

    Am I the only one who finds this odd?
    Probably.
    gatorguysingularity
  • Reply 11 of 55
    isteelersisteelers Posts: 738member
    sog35 said:
    bobschlob said:
    I don't see your number for iPhone sales losses in there (you know... "hardware"; where Apple actually makes it's money?)
    Apple will lose very few iPhone sales. Maybe a few million here or there. Most of the current iPhone users will not buy a $100-$300 Sony phone with iOS light loaded on it. But even if they do lose a few million iPhone sales Apple will make much more profit from the 600 million additional iOS users they gain plus $18 billion in licensing fees.

    The key is not to license iOS light to phones that are high end. Only $100-$300 phones. Many who buy those cheaper phones have no possible way to buy $600-$900 iPhones anyway. I think its a win win for Apple. The only one that losses is Android and Google.

    The way I see it is two options:

    Apple does not license iOS:
    Sell 250 million iPhones
    $40 billion in iPhone profit

    Apple license iOS light:
    Get $30 royalties on 600 million phones
    Sell 230 million iPhones
    $36 billion in iPhone profits
    $18 billion on royalties profits 
    $3 billion on additional services revenue from additional users
    Total $57 billion in profit

    Apple is losing out on profiting on the $100-$300 price point which makes up over a billion units a year.


    But then Apple would be saddled with making sure iOS works on different chipsets  and performance may suffer being on inferior hardware. 
    baconstanggatorguychianolamacguybrakkenSpamSandwich
  • Reply 12 of 55
    apple ][apple ][ Posts: 8,650member
    sog35 said:
    We are at peak iPhone. There is just a limited amount of people willing and able to spend $400+ for a smartphone.

    Apple needs to address the $100-$300 phone market which is a BILLION UNITS A YEAR.
    People who can't afford a $400+ phone can always buy a used iPhone if they want in to the Apple eco system for the least amount of money.

    Even a used iPhone is miles better than a brand new, budget priced Android phone.

    And almost none of those cheap manufacturers are making any money. Apple is making the majority of the profits. Let the losers sling it out in the mud, with their pathetic race to bottom strategy.



    baconstangchiarhinotuffration alcornchipSpamSandwichpalomine
  • Reply 13 of 55
    cnocbui said:

    Let me see if I get this straight.

    First you state you'll believe it when there are "actual SE sales numbers".

    Then you go on to say the S7 had 3X the pre-orders of the SE.

    Am I the only one who finds this odd?
    Probably.

    No. Everyone knows you're a troll, and your post content is all the proof they need.

    So you refuse to believe SE sales numbers from a third party when they show Apple favorably but choose to believe S7 vs SE sales from a different third party when they are not favorable to Apple.
    baconstangchiaradarthekatrhinotuffnolamacguybrucemcration alpscooter63bestkeptsecretpalomine
  • Reply 14 of 55
    The inclusion of OLED into the iPhone will lead to additional difficulties for the cheap Android knockoffs along with Apple's rapid CPU advancements. Samsung is following suit. 

    Xiaomi, Huawei and the rest are in for very difficult times ahead. 
    radarthekat
  • Reply 15 of 55
    sflocalsflocal Posts: 4,614member
    Anything coming from Digitimes is worth about as much as the paper this web page is printed on... nothing.

    Even I find it hypocritical of some folks here that apparently are okay with supporting a rag-mag like Digitimes when they say something positive about Apple.

    Personally, I think the SE is going to sell well... I have zero proof of course and it's worth as much.  I will wait for official word from Apple, and NOT from Digitimes.
    gatorguybrakkenration alcalicornchip
  • Reply 16 of 55
    rogifan_newrogifan_new Posts: 3,979member
    So this is why Apple stock is down over 1% today?
    cornchip
  • Reply 17 of 55
    cnocbuicnocbui Posts: 3,613member
    sog35 said:

    apple ][ said:
    People who can't afford a $400+ phone can always buy a used iPhone if they want in to the Apple eco system for the least amount of money.

    Even a used iPhone is miles better than a brand new, budget priced Android phone.

    And almost none of those cheap manufacturers are making any money. Apple is making the majority of the profits. Let the losers sling it out in the mud, with their pathetic race to bottom strategy.



    Most people don't want to buy a 2 year old phone. Especially since that phone has ZERO warranty.

    People like to buy new stuff. If not no one would buy new cars.

    I disagree with your point about old iPhone hardware. A $300 Android phone hardware would destroy the performance of an iPhone4s or even iPhone5.  Its Android that makes these phones run like crap not their CPU/Ram/GPU.  Put iOS on a high quality $300 HTC/Motorolla phone and it would out perform even an iPhone5.


    You said you buy used cars.

  • Reply 18 of 55
    cnocbuicnocbui Posts: 3,613member
    cnocbui said:
    Probably.

    No. Everyone knows you're a troll, and your post content is all the proof they need.

    So you refuse to believe SE sales numbers from a third party when they show Apple favorably but choose to believe S7 vs SE sales from a different third party when they are not favorable to Apple.
    Don't put words in my mouth, thank you.

    I did not say I didn't believe the SE pre-order numbers.  I do.  I said I didn't believe the conclusion drawn by this article, as to the reason for the decline in sales in China of local brands, which this article attributes to the SE.

    As for me supposedly being biased in my belief in the trustworthiness of sources - tell me, exactly how did I manage that when the SE pre-order numbers and the S7 pre-order numbers are all from the same source?  That source being statements/data from JD.com, Suning and Gome.

    You tell me why you think it is logical to attribute the reported sales decline to popularity of the SE, when the same source of the data says the popularity of the S7 is 3 times as high?

    This article is a bit of a hoot - you have text that says:  "Though the iPhone was already a relatively popular device in China prior to the SE" and yet the title of the article linked to is "apples-iphone-loses-ground-in-urban-china-for-first-time-since-2014"  Truly Lol.

  • Reply 19 of 55
    sog35 said:
    bobschlob said:
    I don't see your number for iPhone sales losses in there (you know... "hardware"; where Apple actually makes it's money?)
    Apple will lose very few iPhone sales. Maybe a few million here or there. Most of the current iPhone users will not buy a $100-$300 Sony phone with iOS light loaded on it. But even if they do lose a few million iPhone sales Apple will make much more profit from the 600 million additional iOS users they gain plus $18 billion in licensing fees.

    The key is not to license iOS light to phones that are high end. Only $100-$300 phones. Many who buy those cheaper phones have no possible way to buy $600-$900 iPhones anyway. I think its a win win for Apple. The only one that losses is Android and Google.

    The way I see it is two options:

    Apple does not license iOS:
    Sell 250 million iPhones
    $40 billion in iPhone profit

    Apple license iOS light:
    Get $30 royalties on 600 million phones
    Sell 230 million iPhones
    $36 billion in iPhone profits
    $18 billion on royalties profits 
    $3 billion on additional services revenue from additional users
    Total $57 billion in profit

    Apple is losing out on profiting on the $100-$300 price point which makes up over a billion units a year.


    If only they would have made clones running their computer OS...  Oh that's right, that went well for them.  I like the idea of getting iOS out there, but the reason Apple products work so well is because they control the hardware and the software.  This eliminates compatibility issues and the need for patches and extensions.  If you think there's too many incremental iOS updates now, imagine if there was a new iOS compatible product being launched every couple of weeks...
    brakkenration alcalipalomine
  • Reply 20 of 55
    DCJ0001DCJ0001 Posts: 57member
    sog35 said:
    Good job Apple.

    With the SE there is a great new iPhone for $399.

    Now Apple needs to get iOS on phones from $100-$300. To do that they should license iOS light version to selected manufacters.

    If Apple plays its cards right it can get 50% market share of the smartphone market.

    Apple should charge the greater of $20 or 15% license fee per phone. They could probably sell 600,000,000 licensed phones a year.

    600,000,000 x $30 license fee = $18 billion in almost pure profit
    No. No. No.

    Apple already earns 90%+ of smartphone profits. Licensing iOS to 3rd party hardware would be a big mistake. 


    Everything is fine as it is.
    brakkenbrucemcration al
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