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A typical (and proven) marketing and sales strategy by Apple:

(1) Realize that there is still a significantly profitable segment in the smaller screen iPhone. Cover that base as well. Well aware that this is not a miniaturised version of a flagship model (6S). More of an (already varied) option for every size needs and costs. To have the best/newest technology - buyers will need to look at the 6S/S Plus. Buyers don't like the size - they can consider the SE. They may seriously consider the SE even if the tech is not up-to-date, but at least it is almost similar to flagship model in some specs.

(2) Reduce cost in terms of new physical hardware redesign, but make it refreshed with new internal. All other accessories can be reused/or modified slightly. Case makers/other accessory makers rejoice.

(3) Reduce the price, make it an entry level iPhone. Make it even cheaper - get people re-interested on all old case, improved specs because of the 'value'. Value is compared against the similarly sized previous model (5S) and the present phone with an almost similar internal (6/6S).
Better than the old, but slightly lesser than the new. Got people thinking (and considering).

(4) Keep prices low for the 16 GB. But knew very well that a few buyers will know that is hardly enough. In the end, a lot of people will be getting the configuration with higher memory capacity - and they are willing to pay for this reason. Apple makes a lot of money.

(5) Knew very well people choose Apple over the whole experience. Specs may be less updated, prices may be more but it runs on a an acclaimed iOS and has the prolific Apps Store. Some people will buy an Apple just for this.

Personally, I have been holding myself from getting a 6 due to the size as well, but did not get a replacement for my broken 5S as I have wanted a better camera. I end up getting small android because of that. And while I am interested to get an Apple Watch, I still don't like to carry the bigger 6 around - so I was kinda waiting for Apple to release a smaller sized iPhone.

The SE provoked my interest once again even though I would prefer a radical new physical look. I still remember the awesome feel and has always prefer iOS over Android. Basically, Apple is drawing me to get this SE based on the points I mentioned above.

Though I must say, the Galaxy S7 is really impressive. If Samsung suddenly announced an S7 Mini, it will be a tough one for me!
 
amazing price....however was really hoping for a new design or SOMETHING we hadn't seen before. Hate the giant bezels on the 5S design, price is killer though.
 
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Once an elegant Apple product line slowly turning into a mess. Pro, SE, Plus, with 3D touch, without 3D touch, with Live Photos, without, this autumn with 2 cameras and with a single one... Want a smaller phone with all the features? Nope. Go get the huge one.
Completely right. What a mess. So confusing now.
 
*sigh* if they were going to keep the design of the 5s why not keep the chamfered edges polished like the original, it was that little design touch that really made the design pop. The chamfered edges just disappear in the matte finish. Strange decision.
 
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At $399, the iPhone 4 SE is less than the $449 subsidy that Apple has traditionally received from the carriers in the US. The subsidised price should be negative. A few years ago this would have been unthinkable for Apple to release an iPhone at this price point.

Maybe Apple has realised that the market for for high priced phones is saturated (or that that other parts of the world need a less expensive phone)
 
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amazing price....however was really hoping for a new design or SOMETHING we hadn't seen before. Hate the giant bezels on the 5S design, price is killer though.

No way that that was going to happen whilst keeping the final price point. I'm willing to bet that the tooling for the SE chassis is 95%+ the same as the 5S, which means its requirements and tolerances are a known factor for Apple's manufacturing partners, and I'm sure that more than a fair few 5S blanks were re-tooled to get inventory up immediately. Eliminating the bezels would radically change the form factor and requiring entirely new tooling and further delay a launch. For a flagship, you can do that, but Apple has to move this model whilst demand is still high.
 
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Still starts with 16 gb.

I think that's my biggest surprise. I'll be going for the 64GB version myself. While I get by fine with my current 16GB iPhone 4 in terms of space, it does require careful management, and if I'm going to be paying $579 CAD for a new phone, then I may as well add $130 to quadruple the storage and take that concern out of the scene. This phone should last me for the next 4 years.
 
Did anyone catch whether this uses the newer TouchID sensor? I had lots of issues with the old one; the sensor in my 6s is much better.

Yes, can anyone confirm which TouchID sensor it uses? It surely isn't the 6s sensor, but is it really the first gen (iPhone 5s) TouchID or (and I hope so) the second gen TouchID from the iPhone 6?
 
This phone and it's pricing shows that Apple is afraid of declining iPhone sales. If Apple was on track to beat their sales numbers, this phone would never have happened. This Phone will reduce the Average selling price for iPhones, which will not make shareholders happy.
 
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....People need to quit bitching about this. We are in the minority. I'm willing to bet 60% of iPhone users are people who just use 3-5 apps and make phone calls, text, and answer e-mails. Unless you are loading music, movies, or taking tons of pictures most people don't need more then 16 GB.

I understand why you want more, and I personally have a 64 GB but they obviously are making money doing this and there are a large number of people buying them.
Um. One of the most chunky apps for users is messages with lots of images and videos. 16 is woeful and just an Apple money grab.
 
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Ah i see... sorry... it was the way you said 5S/SE upgrade instead of saying SE/6S comparison that made me think you were referring to the relative merits of the SE compared to the 5S as opposed to the SE compared to the 6S.

It's fine. The upgrade from a 5S to SE is definitely worth it for those holding out, especially given how Apple phone specs don't change much. The A9 is the best SoC on the market right now since it blew past the Snapdragon 820 the Android phones use. It might even beat the latest Exnyos, but I haven't seen those comparisons yet.
 
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I will buy an iPhone 7, but I will give an iPhone SE to my father. He has an iPad, but no smart phone. The size and price of this new phone will fit us both. Thanks Apple
 
At $399, the iPhone 4 SE is less than the $449 subsidy that Apple has traditionally received from the carriers in the US. The subsidised price should be negative. A few years ago this would have been unthinkable for Apple to release an iPhone at this price point.

Maybe Apple has realised that the market for for high priced phones is saturated (or that that other parts of the world need a less expensive phone)

Yes, this is a strategic move to enter other markets which can't handle the higher margins, and also to keep the sales numbers up in the face of the booming competition. Other phones are "good enough" for vast numbers of people, so Apple can't be too greedy in the face of that.
 
Yes, can anyone confirm which TouchID sensor it uses? It surely isn't the 6s sensor, but is it really the first gen (iPhone 5s) TouchID or (and I hope so) the second gen TouchID from the iPhone 6?

1st-gen TouchID. A budget device doesn't get the luxury features.
 
Yes, can anyone confirm which TouchID sensor it uses? It surely isn't the 6s sensor, but is it really the first gen (iPhone 5s) TouchID or (and I hope so) the second gen TouchID from the iPhone 6?
It's the first gen sensor.
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Just out of interest do we know how much RAM this thing has

Not officially - we won't get that confirmed until after they're on sale.
But I think I read somewhere that the A9 chip requires a minimum 2GB RAM anyway..
 
This phone and it's pricing shows that Apple is afraid of declining iPhone sales. If Apple was on track to beat their sales numbers, this phone would never have happened. This Phone will reduce the Average selling price for iPhones, which will not make shareholders happy.
It's the shareholders who got Apple in all this mess. Pushing for profits instead of pushing for designing great products. The shareholders have no one to blame but themselves. Dump stocks now! #FireSale
 
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Good specs, good price, good design (although it recycles 5S design, it still looks good). I wish I had waited a year for this!
 
I can do this. Apple giving me $250 for my 128GB iPhone 6 and using that towards a 64GB iPhone 6se that won't bend in my pocket for $499 looks good.
 
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