iPhone SE is the most awaited of smart phones. With this being in the market; Apple will face many strategic shifts which are mentioned above. So, if you are planning to buy iPhone SE; make sure to read out this blog post first. There has been a buzz all around about iPhone SE and finally it reached the market. So, today we will discuss about its effect to Apple, changes in the company due to the launch of SE and lots more.
Let’s take a look at iPhone SE:
This new 4 inch iPhone signifies an important strategic shift for the company which investors fail to appreciate. It’s not about iPhone SE’s target of first time smartphone buyers but it is something else that is displayed here:
The iPhone with First of its Kind:
- Old model getting out of style: Apple has always used old models to manage lower price points. Several years ago; Apple formed the strategy of cascading models so that price can be reduced successively.
The main benefit of this strategy is Apple can get good mileage for developing new iPhone every year. This new model can easily enjoy the product cycle of three years. As a result; R& D can be done more effectively.
The major downside is initially you will always have to pay up to get latest technology. Ideally; only flagship models include fastest processors and other such features. Slowly, the iPhone product strategy keeps on altering.
- The most affordable iPhone i.e. the greatest: iPhone SE is first time available with A9 chip that is integrated into M9. Now, it is available just for $399. iPhone 6 that starts with $150 higher price point with A8 discrete M8 motion co processor.
Till now, company has never made its newest technology affordable. People still prefer smaller phones, consumers are satisfied to stay in the market segment; iPhone study is really a strong product and hence they are now habituated to older sons.
- Will it affect iPad? Yes, some of the potential changes for iPad are brought by times. Mini screens are almost daily affected. This is possible due to smaller display form factor. If we closely take a look at Apple’s track record then we can say how powerful it is to get good ideas.
- Apple’s Progress: Apple has little market share. There were estimated 43 million units sold in $400 to $500. Previously, go ahead with second hand projects. Grabbing small part of this segment can translate into 70 iPhone units and this sale is within two hours. So, in case you find such person; finding new models is additive. Cannibalization risks are the modest ways as second hand iPhones consume target. They will purchase new models that include apple’s results.
Let us know how you felt about this post. How this has helped you? What you think Apple iPhone SE will be for Apple; a loser or a profit maker. Let us know what you think. We will definitely be back with more such posts.
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