Orders for Apple’s newly-launched 4.7-inch iPhone SE are better than expected, TF Securities analyst Ming-Chi Kuo wrote in a note to clients on Tuesday. However, he still predicts that iPhone shipments in calendar second quarter (April-June) could decline 20% or 25% year-over-year because of reduced demand stemming from the COVID-19 coronavirus pandemic.
Kuo argues that the strong reception for the iPhone SE suggests consumers are gravitating to lower-priced phones, which has implications for Apple’s business and the companies that supply it with parts.
“The most difficult challenge from COVID-19 for smartphone brands is the negative impact on consumer confidence or purchasing power after the pandemic outbreak, resulting in consumers preferring to choose lower price/spec models or to stop purchasing smartphones,” Kuo wrote.
Kuo argues investors in Apple and its supply chain should focus more on the effects COVID-19 is having on consumer demand, not Apple’s ability to launch new products.
MacDailyNews Take: There was considerable pent-up demand, so it’s not a shocker to see iPhone SE orders being strong. It is, after all, just the first week of pre-orders for the new iPhone which started on April 17th. The new iPhone SE will be available from Apple, Apple Authorized Resellers and select carriers on Friday, April 24th.
iPhone SE sales are better than expected by which party? Apple, investors or analysts? That would make a huge difference. Considering the analyst downgrades, I’m guessing it’s Apple. We’ll only know what investors think after the earnings report. Is anyone actually buying smartphones (or any tech products) in large quantities during this pandemic? I wouldn’t think so, due to economic uncertainty.
I wouldn’t be surprised to see big-screen iMac sales up a ton. People who kept an old beat-up Mac for years now find they can’t run their company’s software, because their old Mac can only be upgraded to El Capitan or High Sierra and the latest apps are installed via enterprise distribution and require a recent macOS. Just a feeling, but maybe they’ll give us some insight into that in the report.
Late 2012 iMac here. Running Catalina and latest OS and software just fine, even MS’ bloated Office suite. MBP only slightly younger.
Unless Apple end support with the next update later this year, then there’s no NEED for anyone to upgrade.
Having said that, if Apple release an updated iMac with 10th generation Intel chips or fast AMD chips soon then I’m a first day buyer! Don’t need to but really want to 🙂
I have what is now a tired iPhone 6s. There was no way I was going to pay circa £1K for a new iPhone but the £419-£469 for an iPhoneSE is far more realistic. So I would certainly agree with the sentiment that SE sales are going to be bigger than expected.
I would say however based on long experience with Apple that this will have a smaller detrimental impact on sales of high end models than other brands would see in the same situation. That is people who would go for the new top-end model will continue to do so, people (like myself) who have held off upgrading for a long time due to the obscene cost will now feel able to do so.
Logically it should also have be a big help in developing markets like India.
Now just think, how much more those sales would be up, if they offered a 3.5″ – 4″ size options; which was said was the “perfect size” by the leader/founder (Steve Jobs) of the company. And his batting average of knowing what people needed/wanted, long before they themselves knew, was extremely successful; and should be considered in a product landscape.