Apple’s new low-cost 5G iPhone SE should enhance the company’s appeal in emerging markets, especially among lower-end smartphone buyers.
Apple this week unveiled 5G connectivity to its iPhone SE – for $429 – which is likely to attract more lower-end buyers in emerging markets.
“The new 3rd gen iPhone SE could be effective in gaining incremental share among price sensitive consumers, especially in Asia,” Cowen and Company brokerage said, citing China and India in particular.
“We expect demand to open up more across other markets like Europe, southeast Asia, and Korea – regions where many consumers stayed away because of the lack of 5G support (for the older SE),” Counterpoint Research analyst Sujeong Lim said.
Cowen and Company analyst Krish Sankar said the new small-screen 5G phone’s $30 price hike from the 4G version should cover most extra costs from the enhanced technology, though margins would be lower compared to the $699 iPhone 13 mini.
He estimated the iPhone SE would generate gross margin between 42%-54%, or roughly half the gross profit for each device compared with the iPhone 13 mini.
MacDailyNews Take: Apple’s new 5G iPhone SE will sell by the boatload. Hopeful, they can make enough!
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With inept Joe Biden’s ludicrous administrative policies that is giving us 40 year high prices because of 7.9% inflation, that emerging market of low-end buyers MDN talks about would be America, right?!?