Why Apple is announcing a new 4-inch ‘iPhone SE’ in March

“Apple has already said that iPhone sales will decline for the first time ever this quarter. Simply put, the astronomical growth posted by the iPhone 6 a year ago made for a difficult comparison, and the iPhone 6s won’t be able to keep pace,” Neil Hughes writes. “But Apple has had a plan in its back pocket all along: the ‘iPhone SE.'”

“By releasing a mid-cycle iPhone replacement, Apple can provide a boost to sales at a time when many consumers start waiting for the next-generation iPhone,” Neil Hughes. “A March upgrade helps to disrupt some of the seasonal trends that effect Apple’s sales.”

“While the imminent launch of the ‘iPhone SE’ probably won’t do much for the current March quarter, Apple will reap the benefits from sales of the new 4-inch model throughout the June and September quarters, right up until the ‘iPhone 7’ launch. That should help offset any tough comparisons for the iPhone 6s, and keep iPhone sales growing.

Read more in the full article here.

MacDailyNews Take: Anything that helps with the iPhone 6/Plus tough compares is a good thing.

18 Comments

  1. It’s called,… LACK OF INNOVATION!

    Competitors have finally caught up! LOL

    WOOT WOOT!

    I can’t wait to hear that iPhone sales are down for the first time EVER!!! LOVE IT. BEST NEWS EVER!

    iPhone sales DOWN since 2007! If that was Samsung in Apple’s place, MDN would be saying BELEAGUERED APPLE! HAHAHAHA :))))

    1. Down since 2007? Ummm…iPhone sales have only ever gone up since 2007. If they’re down this quarter, it will be down since Q4 2015, not “down since 2007”. But I’m guessing this will go right over your head, since you are obviously 13 years old.

    2. If no smaller iPhone, i’ll keep my (already big enough) 5s as long as possible. I will not change my pockets just because everyone around wants those “phablets”!

        1. It may fit into the Levi’s, but it certainly isn’t comfortable, especially when you have to pull it out. After having 5 and 5s, that was the biggest issue I’m having with 6s — the size in the jeans pocket.

          Most Americans have plenty of pocket space in their jeans, but the rest of the world may not, as their waist line is somewhat narrower and pockets smaller. 5 / 5s were a better fit for quite many of us…

  2. So what if iPhone sales slow for a couple of quarters. It doesn’t really hurt the company. All it does is make greedy investors dump the stock. It can happen to any company. Meanwhile, Apple will continue to make plenty of money and profits. It’s possible they might find some new product to supplement the iPhone as hard as that may seem. Other companies manage to do so. At one time before TimeWarner was going to be bought out, Apple was supposedly going to design some sort of cable box for the company. That project came to a halt. Supposedly, Charter is buying TimeWarner and it’s possible that project will continue under Charter Communications which is an even bigger territory. I’d heard the FCC passed some edict or something that allowed consumers to buy their own set-top boxes to use. Apple could have a good opportunity to get into homes with their own design of a set-top box.

    It’s really a shame everyone sees Apple future being so bleak but Apple has the same opportunities as any other company of finding new ways to increase revenue. Why is Apple’s future always in so much doubt by the big investors when it’s highly unlikely Apple will be going out of business any time soon. I still don’t fully understand why the big investors overlook Apple when the company has decent dividends and a steady customer base. I thought Apple’s enterprise business was doing OK, too.

    I’m simply puzzled by Apple’s lackluster share gains but not too concerned about it. I’m not greedy and I’m getting my dividends which is better than a lot of other companies are offering.

  3. I wonder why some people love to hate. In this case, hating on Apple and the Mac. If you like Samsung, fine. If you like Apple, that’s no skin off my nose. Why some can only fire themselves up with hate… Kinda pathetic, to be so emotionally wasted such that only red-hot hate can start your furnace..

    1. Here’s a theory. It’s mostly due to the natural clustering of people into tribes, who develop their own values. They defend those values against the encroachment of other tribes, by vilifying them. In other words, hate is a social defence mechanism. Of course, cooperation between tribes also arises naturally out of mutual needs such as sharing resources or allying against a third, stronger opponent. Then the hate is rebranded, for use in cementing emotional opposition to the new adversary.

      Even though Hate is a potion useful to social groups in mustering strength and solidarity, ingested by some weak or demented individuals it becomes a toxic cocktail. The sensation of being right, or righteous, with your group at your back, is euphoric. It confers implicit permission to do harm whilst protecting one’s own gentler virtues.

      Mind, all this applies to most all of us. Who hasn’t had the urge to guffaw at egg on the other guy’s face? BWAHAHAHAHAHA! Of course with us it’s just harmless fun, a watered-down sort of hate, as it were. 😜

    2. Actually Samsung have been fined in the past for paying students to lambast their competitors in forums and web reviews. This is a fact BTW if you wish to Google it.
      I recall reading about one incident where HTC were on the end of their pointy stick and Samsung got hit with a $340,000 fine on that one.

  4. The problem with such analyses is that they fundamentally misunderstand Apple’s “DNA”. A statement like “A March upgrade helps to disrupt some of the seasonal trends that effect Apple’s sales” is ludicrous if you know Apple. This guy should work for Samsung, that’s where this kind of thinking fits well.

    It will be interesting to see how Apple positions this, but my take is that there really is a need for a smaller iPhone, one that Steve Jobs famously wanted to fit in his jeans pocket. This is an upgrade to the 5s, plain and simple, something that is mainly a communications device, but that can also do everything an iPhone can, within ergonomic limits.

    Yes, Apple looks at the bottom line, but this isn’t the main reason they do what they do.

  5. I hope the iPhone SE adopts the look of the iPhone 6s and not the iPhone 5s. If it looks like the 5s sales will not be as good.

    There should be three sizes of iPhones, not two and one from the previous generation. Now, if they want to use the old style phone for low cost sales, fine, then we’re talking about a four phone strategy. But be sure there are three identically styled top of the line phones, not two, as there are now.

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