The new iPhone SE value proposition will “fractionally” expand iPhone market share, which has hovered in the high teens globally for the past four years, Gene Munster writes for Loup Ventures. While the techs specs lag more expensive iPhones, Munster says the new SE represents the best value in the current iPhone line up.
More importantly, in the hands of new first-time Apple customers, the company will have new opportunities to cross-sell AirPods, Watch, and Services, adding to its base of 1.5B active devices. Ironically, on the day Apple announces a new phone, it’s important to note that Apple is no longer an iPhone story (51% of revenue down from its peak of 69%)…
We believe the new iPhone SE will account for about 20% of total iPhone units over the next year, compared to our estimate that last year’s SE versions accounted for 13% of units. This means the SE will likely be the second-best-selling iPhone model behind the iPhone 11. We’re modeling for 153m total iPhones over the next 12 months and expect the new SE to account for about 30m units.
The iPhone SE will appeal to a combination of customers who, in the past, purchased secondhand iPhones or Android devices.
MacDailyNews Take: iPhone SE will certainly help power Apple’s stellar Service growth by increasing the user base of those with modern, capable iPhones:
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