Earlier this week, Apple introduced a new mobile device – iPhone SE. It seems like the corporation decided to go back to the roots since the new smartphone by Apple has a 4-inch screen. According to the Hi-Tech Department of Market Leader, the audience wasn’t impressed with iPhone SE. Some experts say that this device is going to fail completely in terms of international sales despite being a relatively low-coast device.
The experts working for KGI Securities have already depreciated their forecast for iPhone SE sales and are now predicting that the total shipment volume for this year is not going to exceed 10-12 million units. The total amount of sales of Apple mobile devices is expected to be around 210 – 230 million units.
At the same time, most Wall Street analysts out there, including UBS Group AG, are more optimistic on the matter. They expect Apple to sell over 15 million copies of iPhone SE this year. Still, this is a minor achievement for such a heavyweight as Apple.
After examining the new devices by Apple, Counterpoint Technology Market Research experts tried to figure out what is the reason why Apple decided to come up with iPhone SE. The thing is that the average price of Apple products is growing, especially it holds true for iPhones. In 2015, the cheapest iPhone cost some $300 per unit. iPhone SE costs $400-500 per unit depending on the memory storage. It turns out to be more affordable than the outdated iPhone 5C version.
Counterpoint Technology Market Research are sure that Apple is now trying to get rid of outdated models which are only wasting the corporation’s capacities. In the meantime, the new device is way more powerful than those outdated low-cost solutions. Therefore, Apple hopes that the new and exciting innovative features that iOS 9 can boast are going to motivate the user to buy iPhone SE.
Still, most experts believe that the new device is not going to be popular worldwide despite being relatively cheap since the global demand for small-screen smartphones has been going down steadily over the last few years. The thing is that iPhone SE is aimed mostly at emerging markets, while the price is still too high for the regions. For instance, 70% of the smartphones purchased in India cost under $150 per device.
Nothing fancy that Apple’s stock entered the red zone after the release, Masterforex-V Academy experts say. The price has already lost 0,46%. At this point, AAPL is trading around $105,67 per share.
