In March, Apple is expected to reveal a 5G iPhone SE, but the major surprise might be a price cut for the existing model. In addition, Amazon's Astro robot is still missing, and Apple Stores had a crazy week.
The demand for a low-cost iPhone geared at emerging regions has been building for years.
A $200 smartphone might make advances in Android strongholds such as Africa, South America, and Asia. This would allow Apple Inc. to sign up more users for services, possibly making a low-cost iPhone very profitable in the long term. However, the corporation has stayed away from that strategy thus far.
When carrier subsidies began to dwindle and demand for a lower-cost iPhone surged in 2013, Apple officials stated that they would not introduce a low-cost iPhone simply to gain market share. It did release the lower-end SE in 2016, but the phone cost $399, which was much above the price of many Android phones at the time, and the price did not decrease over the next five years. Steve Jobs' mentality of "don't ship trash" has been followed by the corporation.
Apple, on the other hand, has a wonderful chance to make a difference when it releases a 5G version of the iPhone SE, which may happen as soon as early March.
I propose that Apple keep selling the previous iPhone SE for $199, which is a new, lower pricing.
The current iPhone SE is available for around $200 from third-party retailers, and reconditioned units are numerous. Apple might have a hot seller in emerging regions if it provides its own $199 smartphone. It would also provide consumers who aren't interested in a $1,000 iPhone 13 a choice if they don't care about 5G service.
Apple may increase long-term income from services and attract users to its ecosystem by increasing its user base with a $199 iPhone. People who have tried AirPods, an Apple Watch, or a higher-end iPhone may be more inclined to try a higher-end iPhone in the future.
In addition, the move would provide Apple with a simple solution to its iPod touch dilemma. The iPod touch has been a popular alternative to the iPhone throughout the years—and Apple still offers it as the company's final remaining iPod—but it hasn't been upgraded since 2019. The current model features a 4-inch screen that is out of date, as well as a 2016 A10 processor that is sluggish.
In contrast, the iPhone SE sports a 4.7-inch screen, Apple A13 processor, and more sophisticated internal components. Apple might eventually retire the iPod line if the iPhone SE matches the iPod's $199 price tag.
But, what does this signify for Apple's well-known profit margins? The corporation prefers 30 percent to 40% profits on hardware.
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