“The latest leak on Apple’s upcoming 4-inch iPhone suggests Apple might be ready to deliver a two-punch combo to competitors by rolling out not only the new iPhone SE but also keeping the 5s alive,” Mark Rogowsky writes for Forbes. “What does that do? Well, if what KGI Securities Ming-Chi Kuo believes comes to pass, the 5s will see its price cut in half when the new, updated model is announced in late March… Could the 5s really be headed for pricing around $225? And if so what does that mean for mid-tier Android phones?”
“With support for Apple Pay and the current A9 chip, the only important things an SE will lack that a 6S has are the larger screen and 3D Touch. Apple’s goal here isn’t just a desire to have more people running modern hardware, it’s of course that it wants to make money and selling $450 phones with margins around 50% is very good business indeed,” Rogowsky writes. “In the U.S. alone, more than 40 million people are using models pre-dating the iPhone 6 and some are likely wedded to the smaller form factor. The SE could be the perfect upgrade.”
“The second big reason for this push — again, assuming the price cut happens — is to continue a very quiet move to become more competitive in emerging markets,” Rogowsky writes. “This push in emerging markets dovetails nicely with Apple’s third objective, which is to apply continued pressure to Android everywhere but the lowest price bands. The so-called “premium Android” market has been devastated in recent years, mostly retreating away to lower price points rather than trying to compete at Apple’s pricing. Even the Galaxy S7 is launching with bundles and discounts… What Apple is doing here represents a significant break from past strategy…”
Much more in the full article – recommended – here.
MacDailyNews Take: If Apple plays their cards right, emerging markets like India could be a big contributor to iPhone’s return to growth later this year.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]