Apple released a small, 4.7-inch iPhone SE priced at $399 on Wednesday, cutting the starting price for the company’s smartphone line in a move to broaden its appeal to budget-conscious customers as the coronavirus hobbles the global economy.
The lower-cost model could also attract more consumers to Apple services, a growing driver of revenue.
The iPhone SE will start at $50 less than what was previously the cheapest iPhone available, the iPhone 8, which will be retired. The SE comes with a 4.7-inch display and the same processor chip as Apple’s most advanced phone, the 11 Pro.
The announcement comes as the United States and much of the world is reeling from the novel coronavirus, although U.S. political leaders have begun to talk about ending stay-at-home orders and restarting the economy… Ben Bajarin, principal analyst for consumer market intelligence at Creative Strategies, said that Apple likely realized many customers were buying older models such as the iPhone 8 rather than the newer iPhone 11 Pro at $999, “and a big part of that is probably price.” Those budget-minded iPhone buyers may have been turned off by the iPhone 8’s aging chips and camera.
“Given its price tag, (the iPhone SE) is unlikely to be that impactful for Apple’s financials, but could help widen the installed base, which will be helpful long term for Apple’s services revenue,” said James Cordwell, an analyst with Atlantic Equities.
MacDailyNews Take: Yup.
Whatever they call it, this “Apple iPhone SE 2” needs to be physically small, with modern cameras and Apple’s top A13 SoC, at a good price. Regardless of whether or not Apple can pull off an edge-to-edge, Home button-free device at a budget price, this iPhone will serve as a gateway into the Apple ecosystem for millions and adding even more fuel to Apple’s burgeoning Services business! — MacDailyNews, January 23, 2020