Why the iPhone SE will appeal to new smartphone users
Although long-time iPhone owners might wonder what the fuss is, Apple's iPhone SE is carefully calculated to attract people who may have never even owned a smartphone before.

The first draw, naturally, is price. At $399 for a 16-gigabyte model, it's still not cheap -- mid-tier Android phones like the Nexus 5X are less expensive. Yet for people who want to go the Apple route, that's $250 less than an iPhone 6s, while retaining many of the same features. If you go with carrier financing the device becomes even more palatable, starting at about $13.30 per month.
These are U.S. prices, but even so lowering costs may be enough to grow the iPhone's footprint in countries like China and India, where smartphones are still a luxury relatively few people can afford.
Where people have the money, the SE offers a unique proposition: an entry-level smartphone which doesn't make major sacrifices. The device has the same A9 processor as the iPhone 6s, and even the same 12-megapixel camera, along with Apple Pay support. The only serious drawbacks are a 4-inch display and a lack of 3D Touch, which may not matter to some people.
Indeed, many people prefer smaller phones, and newcomers may not care that bigger screens are available -- at least initially. This group could include children and teens, if just when their parents are rich enough to splurge on a state-of-the-art iPhone.
Because the SE isn't crippled in the performance department, its pricetag may also be more tempting than previous "budget" iPhones in terms of longevity. Until now, low-cost iPhones have only been older units kept on sale, or repackaged and slightly tweaked as with the iPhone 5c. Apple appears to be acknowledging, finally, that people are apprehensive about buying a device that could become slow or under-supported just a year or two later. A premium price is easier to swallow with premium specs.
The iPhone SE was announced on Monday at a special press event. Preorders start Thursday, March 24, though the product will only ship March 31.

The first draw, naturally, is price. At $399 for a 16-gigabyte model, it's still not cheap -- mid-tier Android phones like the Nexus 5X are less expensive. Yet for people who want to go the Apple route, that's $250 less than an iPhone 6s, while retaining many of the same features. If you go with carrier financing the device becomes even more palatable, starting at about $13.30 per month.
These are U.S. prices, but even so lowering costs may be enough to grow the iPhone's footprint in countries like China and India, where smartphones are still a luxury relatively few people can afford.
Where people have the money, the SE offers a unique proposition: an entry-level smartphone which doesn't make major sacrifices. The device has the same A9 processor as the iPhone 6s, and even the same 12-megapixel camera, along with Apple Pay support. The only serious drawbacks are a 4-inch display and a lack of 3D Touch, which may not matter to some people.
Indeed, many people prefer smaller phones, and newcomers may not care that bigger screens are available -- at least initially. This group could include children and teens, if just when their parents are rich enough to splurge on a state-of-the-art iPhone.
Because the SE isn't crippled in the performance department, its pricetag may also be more tempting than previous "budget" iPhones in terms of longevity. Until now, low-cost iPhones have only been older units kept on sale, or repackaged and slightly tweaked as with the iPhone 5c. Apple appears to be acknowledging, finally, that people are apprehensive about buying a device that could become slow or under-supported just a year or two later. A premium price is easier to swallow with premium specs.
The iPhone SE was announced on Monday at a special press event. Preorders start Thursday, March 24, though the product will only ship March 31.
Comments
THIS IS APPLES plan to compete with xiaomi as the market for the more expensive iPhones dry up. Good plan in my opinion
The only reason a first time smartphone owner wouldn't want it is because they want a larger screen, and in 6 months when the 7 comes out, the 6 will fill that slot at $450, or less..
How would that be Apple's -- as opposed to your government's -- fault?
iPhones have the best useful life in the industry. bar none.
Sales taxes in Canada depends on the province you're in. Where I am (Ontario) it's an additional 13%, so if you include taxes it's actually worse (doing the math, about 15% higher if you include the taxes). About a month ago the FX was closer to 1.4 (vs. today's 1.3), so it could be that Apple set the new price anticipating a stronger US / weaker Canadian dollar, but then I'd have expected that same factor applied to other new products, like the 9.7" iPad Pro...however, the factor on that device is 1.25 (USD$599 vs. CAD$799). Still, the CAD$579 starting price for the SE is much more attractive than the CAD$899 for a 6s...
Essentially my point is that Apple is very inconsistent with their application of an FX factor. As noted above an iPad Mini 4 has a factor of only 1.1 whereas the new SE has a factor of 1.45. Other devices fall somewhere in between. I don't think this is (in Canada's case) attributable to duties/taxes/Government. I'm not saying it's anyone's fault either - simply pointing it out for fellow Canucks - take advantage of the lower factor prices (like the Mini 4) while you can!