Why iPhone SE will be successful?

Yavuz Selim Elmas yazdı

Because Apple knows what to do or not. Unfortunately, that is not the correct answer. I bet Apple knows what to do or not but some market indicators would better explain why iPhone SE will be successful. There are 3 of them

First, market volume for personal computers was declining in 2013. This was obvious because we are all going mobile and we are all on the move. With regard to this situation size of the screen of mobile phones became to matter a lot. Even Samsung made some models in which their screen size is very close to those of iPad Mini. However, Apple must have seen that coming. Apple responded that shift in the market by launching iPhone 6 Plus model.

Second, Apple was in need of diversifying its product range. Tim Cook himself admitted that in shareholder’s meeting in 2012, and he came up with Apple Watch. Although, Apple headquarters is very reluctant to disclose Apple Watch sales numbers specifically yet. According to Forbes article, Apple shipped 12 million watches in 2015, particular nearly half of them. By doing that, Applealso defeats Samsung at the digital watch products. Samsung had the 74% of the global market share of digital watches in the Q2 2014, while Apple was not present there all. Now, Apple has the 64% of that market and Samsung’s share dropped to 16%.

Third, China is not only a production place for Apple, it is also a great market. However, smartphones are obviously getting to be cheap every day, especially the ones in China, and we all aware the high price of iPhone. Apple is doing something to change that thing a little bit. Today, as of 31 of March 2016, Apple is launching the iPhone SE. The only new iPhone which will be sold at under 500$, the price for it will be 399$. This is actually the second attempt of Apple to target low-end customers. However, the first one, iPhone 5C attempt was not successful because it was priced as 587$, which is higher than the cheapest iPhones in China.

I firmly believe that Apple got some lessons from 5C case. With considering the decreasing prices of smartphones and the cheap rivals such as Xiaomi in China, Apple’s move would highly likely to be successful to broaden its low-end customer base. People see Apple as a sign of status, people who lives in outside of the US see more of like that. By thinking in their terms, you can get Apple, and you do not have to pay a lot money. That seems like a quite good deal. As a person who lived in Turkey, an emerging market, I strongly believe that it would help to accelerate Apple’s low-end customer base and global sales.


Originally published at vestiyer.co.