“When Apple took the wraps off the iPhone SE in March, fanboys (and girls) everywhere wondered, is that it?” Alice Truong writes for Quartz.
“The iPhone SE, though relatively cheap at $399 to $499 in the US, was underwhelming. This was essentially the innards of the iPhone 6S jammed into the body of the now-dated 5S,” Truong writes. “While many were clearly disappointed, Apple saw the device as a way to capture a larger share of the lower-priced smartphone market. The strategy seems to be paying off.”
“According to a June 15 report from Credit Suisse, the market for $500-plus phones is narrowing in recent years, comprising a smaller share of smartphones globally,” Truong writes.
Truong writes, “The iPhone SE is Apple’s ticket to seizing greater market share of cheaper devices. Of smartphones priced at $300 to $500, Apple’s share is projected to grow to 17% globally in 2016 from 8% last year.”
Read more in the full article here.
MacDailyNews Take: Granted, it’s not a Liquidmetal iPhone, but the iPhone SE is actually a gorgeous (might we say the most gorgeous?) iPhone, packed full of modern tech. It’s hardly “boring” or “lackluster.”
And when the profit margins on iPhones drop as a result of the success of the SE, so will AAPL.
Revenue already did drop. AAPL wasn’t affected too greatly. Besides, a cheaper iPhone increases volume, and potentially market share… which is what Wall Street is all about.
And don’t kid yourself, marketshare IS important, even if Apple says it isn’t. As you get more into services, you need to have sufficient market penetration… Messages would be far more useful if it were also on Android, for example.
AAPL has risen and fallen on both margins and market share, so we’ll see which dominates next go round.
Oh, and revenue is not what I am talking about, but the profit per unit, which is lower for less expensive units. I am not saying the SE is a mistake, just that falling profit margins are hated by Wall Street.
Apple stock is getting hammered all week. None of their products matter anymore. I finally had to dump my shares. I simply can’t take the massive losses that I have been getting day after day after day.
Exactly the wrong time to sell. iCal this and come back to it two years from now. 🤔🤓
The end of the world is near, run for the covers, folks.
If you are a trader, then you blew it months ago.
Now the insiders are buying up APPL.
Yep
The herd rushing to buy AAPL this week is a small one because share prices are continuing to decline. Perhaps Apple insiders need to explain to the world what Apple is up to, since the mainstream investors didn’t see any must-have developments.
I bought a 64gb 6s on day one, but will get an SE in Fall 2017/Spring 2018 because I like the smaller size, I never use the 3D Touch.
For someone to say the iPhone SE is “boring” shows the toxic levels of entitlement we have in our culture.
Beauty is in the eye of the beholder. I look at the SE and want to add XY. All the tech in a great package. When I look at it next to a 6S, I can’t find $250 more value.
The only problem I see with the SE is you can’t find one in stock. Three months in and the delivery time is still two weeks out.
I got the 64GB SE soon after they came out and will never regret it. Has everything I need, is fast, has the small footprint that I need and like, and doesn’t have what I don’t need or want. Interest free at my local Apple Store. Perfect!
I’m right with you Dave. Finally upgraded my old 4S when the SE came out. Love the small form factor, it is lighter than my 4S, and the battery life is amazing.
After weeks of waiting, I got mine yesterday and I am very glad that apple came out with this iPhone SE. I couldn’t afore the big 6s, so now I have the best smartphone in the world at a affordable price.
Traded in my iPhone 6 ASAP. The SE is a perfect fit. Zero issues, long battery life, secure 1-handed operation,.. the perfect phone.
And the naysayers said this would flop (Including MDN), ya…right!
MDN never said the SE would flop.
Missing from the Alice Truong’s analysis was the fact, as mentioned in these comments, was a smaller form factor that many desire. This SE is a great phone.
Best iPhone in the range for me. Compact, fits in every one of my pockets, square sides ideal for instant tripod, ace camera and 4k video. Love it.
I’ve been buying and using iPhones since the original iPhone, and I totally love my iPhone SE. It is by far the best iPhone I’ve ever had. Some people will say anything.
I loved the 5, got the SE as soon as it appeared, and was totally looking at the size factor above all other considerations.
Steve Jobs knew that 4″ screens were the right size ergonomically. You can use it with the thumb of the hand you hold it in, on the go, no issues, and get to all of the screen without adjusting your grip.
6s and 6s+ screens have a place of course. However, Apple really missed out on an entire market when they let the 4″ phones fall behind. Some of us were saying it all along of course. It’s great to be proven right. My SE is a great phone.
Steve Jobs touted the 3.5 inch screen as the perfect size. Then he died. Later an iPhone with a 4 inch screen was produced, to cries of “Steve never would have done this” and adverts showing slightly awkward one-handed use of the thing. How soon we forget.