iPhone SE Sales Forecasted as 'Lackluster' Over First Weekend

[drfoto]

While it appears that Apple has elected not to share first weekend sales numbers for the iPhone SE, as it has done in the past for some flagship models, multiple analysts have forecasted that sales of the new 4-inch smartphone were "lackluster" during its first three to four days of availability.

In a research note issued today, KGI Securities analyst Ming-Chi Kuo questioned last week's CNBC report claiming that iPhone SE orders topped 3.4 million in China, and added that demand for the iPhone SE "has been significantly lower than that of past new models" since launching on March 31.Mobile analytics firm Localytics echoed Kuo, claiming that iPhone SE adoption was "lackluster" following the device's launch. According to the firm's research, the iPhone SE "managed to grab only 0.1% of the iPhone market" over its first weekend of sales, which marked lower adoption than the iPhone 5s and all of the "6" models.

Apple launched the iPhone SE last Thursday on the same day as Tesla began accepting reservations for its lower-cost Model 3, and consumer excitement was unsurprisingly geared towards the highly-anticipated electric vehicle. In fact, many Tesla locations in the U.S. and Europe had longer lineups than nearby Apple retail stores.

Kuo forecasted that overall iPhone shipments will likely fall below 200 million units in 2016, indicating that the iPhone SE will not be enough for Apple to overcome "peak iPhone" until at least next year.Nevertheless, considering that the iPhone SE is effectively an upgraded iPhone 5s, and based on a design first introduced in 2012, it is largely unsurprising that demand among early adopters may be lower than usual. Apple's flagship iPhone 7 series is also due in September, which many customers are likely holding out for.

The success of the iPhone SE in emerging markets such as China, India, and Pakistan is likely what Apple is more concerned about. The smartphone's lower starting price should help get the device in the hands of consumers in markets where premium smartphones are out of reach for some due to socioeconomic factors.

In those markets, there is at least anecdotal evidence to suggest that the iPhone SE may be off to a good start.

Article Link: iPhone SE Sales Forecasted as 'Lackluster' Over First Weekend

[doublepost=1459813375][/doublepost]I've used the iPhone 6 and since the "S" a 6s Plus, my first forays into large phones. Frankly I'm very tired of the 6 design. It's too hard to hold with the rounded edges and too heavy. I wouldn't have suspected I'd be attracted to the SE but as soon as it was back in my smallish hands it felt very welcomed. As for lackluster sales, if that's the case why is every Apple store in Atlanta sold out? I didn't preorder and there doesn't seem to be a space grey 64 GB phone to be had. Ordering from the store suggests a two week backlog. I'm not an analyst but that seems, from a grassroots perspective, to indicate pretty significant interest.

 

[nebo1ss]

Perhaps they should call it the Trump phone since it is for people with small hands.

 

[einsteinbqat]

Too many products. Apple needs focus.

 

['Dorian]

Where are all the people that wanted a new 4 inch iPhone?

(yes, its not exactly 'new', its a refined 5s).

We're waiting. Obviously not the demographic that says "oh shiny!" and buys out of impulse. I'm debating ordering the SE (Special Edition), or waiting to see if the iPhone 7 has a more structurally sound enclosure than the 6. My 5s has been through many job sites and is built to take abuse. It also helps that the 5S is still plenty fast enough if you don't care about games and works just as it did out of the box two+ years ago.

If the 7 is disappointingly flimsy like the 6 was/is, I'll get the SE.
[doublepost=1459815375][/doublepost]

On another note, I'm selling my 6S and getting this on release. I miss the days of wearing light shorts without having a big heavy thing in my pocket punching my leg with every step. Summer is coming.

Um... the 5S, and I'm guessing the SE definitely FEEL heavier than the 6 models. For some reason everyone that has a 6 or higher has showed me to try and get me to upgrade. So I guess you want a smaller, heavier thing in your pocket. That said, the weight of the 5s has never and still never bothers me.

 

[Avalontor]

$30,000 vs $400. A man who pre-orders a 30k car, can buy a 400-buck phone next-door. Nobody to blame

..It's all about the fact that it's targeted for ~30% of iPhone users, many of them still being on contract with their older phones.



Last years specs that outrun this year's Android flagships

Ok look, how cute, specs matter on MR again.

 

[Ray Brady]

It appears that demand exceeds what Apple expected, however many that was. I'm looking for a 64GB SE and there isn't one within drivable distance in NYC or NJ.

Yep. I went to the Grand Central store on Friday morning, and asked if the SE was in stock. They were certain it was, but when I asked for a 64GB Space Gray, they checked their inventory and were surprised to see they had been cleaned out. I went online and checked every store in Manhattan, and they were all dry. I honestly don't know how "sold out everywhere" translates to "lackluster".

 

[IbisDoc]

Yep. I went to the Grand Central store on Friday morning, and asked if the SE was in stock. They were certain it was, but when I asked for a 64GB Space Gray, they checked their inventory and were surprised to see they had been cleaned out. I went online and checked every store in Manhattan, and they were all dry. I honestly don't know how "sold out everywhere" translates to "lackluster".

Lackluster = only selling 1/3 of your newly released product.

 

[japanime]

The SE is what you're after, you just don't know it yet.

Despite the fact we've never met, I'm glad you know what I'm after even if I don't. I asked my wallet, though, and it disagrees with you.

The SE is a new 4-inch phone. Reviews are positive. The phone is a screamer. Or do you want every release to outperform the previous, even if performance is already top-notch?

I love the form factor of my 5s, and it still performs great. If I'm going to drop another $600 on a new phone (the price of the SE in Japan), though, it will need to have game-changing upgrades.

I think this type of sentiment gives credibility to claims that there is some percentage of Apple customers who buy for the "boutique mystique". I don't say that as an insult, but there are people who are more concerned with "form" over "function".

If I were one of those types of customers, I would have jumped from the 5s to the 6/6+, and then from the 6/6+ to the 6s/6s+. But I didn't. I want a new phone with incredible new functionality. The SE has some nifty performance enhancements, but otherwise it's just a supercharged 5s.

You're going to be holding onto that 5S for a while.

Perhaps. I certainly don't have any major issues (yet) with my 5s. Or maybe I will jump to the Sony Xperia Z5 Compact, which I mentioned several weeks ago in another thread discussing smaller-iPhone rumors.

If sales aren't good on this one, I think it's fair to assume they won't release a "new" one in the lineup in the fall. This was a great way for them to test the market like with the 5C.

So, those of us who want a high-performance iPhone in a smaller package are supposed to buy the SE to convince Apple we will then buy the 7 mini or whatever? No thanks. I upgrade only once every three- to four years anyway. (I went from the 4 to the 5s, and then planned to go from the 5s to what I had hoped would be a 4-inch iPhone 7).

 

[maxsix]

Gradually the reality of slowing interest in iPhones of any size kicks in. Ho-hum attitudes prevail as would be buyers look away from Apple.

 

[Glideslope]

Sure it is. It just appeals to people who value price over features. These people aren't even aware that the SE exists, because they haven't decided to upgrade their phone yet.

Precisely, and most Americans like to "Supersize." The SE is about Asia before anything else.

 

[inscrewtable]

Too bad the exchange rate has gone down the plughole in Australia, otherwise I'd be trading my iPod 6 gen and old, cracked on the back yet still functional iPhone 4 for one of these.

 

[smirking]

On another note, I'm selling my 6S and getting this on release. I miss the days of wearing light shorts without having a big heavy thing in my pocket punching my leg with every step. Summer is coming.

It's funny. That's one of the reasons why I'm thinking of getting an SE. I have a hard time finding pants that fit right and I bought a bunch of nice fitting pants and shorts that have a trim smartphone pocket that securely holds something the size of the iPhone 5s. I'm still hanging onto my 5s for now though. The speed of the 5s is starting to feel a tad slow so when I see deals that knock $100 off the price, it's very tempting.

 

[Santabean2000]

A participator of many is a master of none. It's been Apple's mantra since Steve returned to the company in '97.

Also, you can't expect Apple to make every single form factor that people a clamoring for either. It's basic marketing too. Why would you want a phone with a markup of, say, 100% to look more appealing to the consumer than a phone with a markup of 150%. Apple doesn't have a stockpile of money to not understand how this works. It's business and it sucks at times but you can't expect them to be a charity too. It is clear that the goal of this phone was to bring the cost of production down as low as possible. Even the chassis and screen can be made on the same production machinery as the 5S to they don't have to invest in more machinery for the factories. They are wayyyyyyyy more factors to this decision than many are recognizing. Be happy that they didn't leave the 4" form factor behind as most of us expected they would and appreciate they are going to give it at least one more update. You can't win them all.

I hear what you're saying - and I agree it makes complete 'spreadsheet sense', but that's NOT what made this company unique and great; it's not a good look or a great long term move.

The SE looks and feels like a panic afterthought. Apple seems desperate. Apple seems lost.
[doublepost=1459819143][/doublepost]

Too many products. Apple needs focus.

Exactly. Laser focus. Apple has lost it's mojo under Tim. I like what he is doing on the social, environmental and political side of things - but has it come at the cost of no longer producing "insanely great products"?

 

[Naaaaak]

Lackluster small iPhone sales. Apple Watch not the grand slam they'd hoped.

Imagine if they gave that time and attention to their Mac business. We'd have devices thinner than paper!

 

[dampfnudel]

Yep. I went to the Grand Central store on Friday morning, and asked if the SE was in stock. They were certain it was, but when I asked for a 64GB Space Gray, they checked their inventory and were surprised to see they had been cleaned out. I went online and checked every store in Manhattan, and they were all dry. I honestly don't know how "sold out everywhere" translates to "lackluster".

Apple stores in Manhattan get a ton of international tourists eager to save money so even a "lackluster" iPhone could sell out there when it's released.

 

[Col4bin]

No biggie. Give it 15m. The SE is not about the US Market.

Right. You must be talking about Brazil, China, etc where this phone is still considered a luxury purchase, and more expensive than the competition. Sales margins are still lower.

 

[512ke]

64gb SE is also sold out in every store in the Los Angeles metro region.

I don't think you can say it's sold out in both NYC and LA for any valid reason except 1) high demand and/or 2) low supply.

So either it's a hit or Apple underestimated the number of people who are too smart to pair a 12 mo camera with a stingy 16 gb of memory.

 

[rui no onna]

Where are all the people that wanted a new 4 inch iPhone?

(yes, its not exactly 'new', its a refined 5s).

Here. Actually need two (dying battery on my parents iPhone 5s's). Unfortunately, despite lackluster sales, the SE is apparently out of stock in all Apple stores within a 20-mile radius from me so my only choice is to order online. Kinda sucks since we needed the phones ASAP.

 

[AxoNeuron]

I think this phone should have stayed in the year 2011 where it belongs. A 16GB phone at $400 is ridiculous. I hope this device flops hard

 

[Palladium SG]

The limited availability is reality. The "slow sales" is only in comparison to completely brand new iphone that the entire Apple customer base has had years to get ready for and get used to buying. Many many folks are on two year contracts or are just used to replacing their phone every two years. They were ready to buy the 6 and others were ready to buy the 6s. But those folks aren't ready to buy a new iPhone off-cycle. It is April. We are well into the part of the year where Apple customers start eyeing the September iPhone release. Folks buying now either have a broken iPhone or they don't care too much about iPhones.

I'm actually shocked that after one weekend the SE is estimated to be 0.1% of all iPhones being used. Consider that Apple has sold over 800 million iPhones, with most of those being the iPhone 5 or later models it is incredible to me that SE actually is showing up enough to be counted. I figured the SE would have a bump and then start taking Android sales to cost conscious customers. But those aren't folks who are going to preorder.

I'm expecting price drops in September across the iPhone line by $100. We've already seen that the iPhone SE has room in its margins for a price drop. Apple will make up the margins hit as its software revenue continues to increase.

Anal-ysts needs to get their head out of their own fantasy butthole. Any vendor not Apple would dream of shipping ~5M $500 phones in one weekend, much less ~8M.

Even Samsung needed to pull all stops in marketing to ship an unverified ~10M S7s in one whole quarter and it's hailed like a complete victory. That's like what, 12 weekends? Why don't the same analysts rage how piss-poor Android is at selling flagship phones despite hitting every tick on the nerd feature sheet?

 

[\-V-/]

I think this phone should have stayed in the year 2011 where it belongs. A 16GB phone at $400 is ridiculous. I hope this device flops hard

It came out in 2013. And it contains many of the components of the 6S. Also, what point are you trying to make exactly? The 6S is several hundred dollars more and has 16 GB as the base. Why should the SE flop hard even though it has the same base storage as its much more expensive older brothers? Are you just hating to feel cool? I agree with you that 16 GB is ridiculous, but at least for the SE's price it makes more sense. It makes zero sense on the 6S and 6S+.

Same analysts


Anal-ysts needs to get their head out of their own fantasy butthole. Any vendor would dream of shipping ~5M $500 phones in one weekend, much less ~8M.

Even Samsung needed to pull all stops in marketing to ship an unverified ~10M S7s in one whole quarter and it's hailed like a complete victory. That's like what, 12 weekends?

Pretty much.

 

[Soccertess]

It essentially does have the same features as the flagship iPhone, the only things missing are 3D Touch, and the 2nd generation Touch ID sensor. The SE is in the same form factor as an older iPhone, let's not confuse form factor and features as the same thing.

I agree, the issue is design. Similar with car companies, they created a design language for what is considered new and cutting edge. Iphones, ipads, and the apple watch all followed this design language.

However, those high paying executives at apple may have thought not to damage there design language, because the phone was going to be sold for less. I think they made a mistake because people want the cutting edge in a smaller form factor.

 

[jntdroid]

I hear what you're saying - and I agree it makes complete 'spreadsheet sense', but that's NOT what made this company unique and great; it's not a good look or a great long term move.

The SE looks and feels like a panic afterthought. Apple seems desperate. Apple seems lost.
[doublepost=1459819143][/doublepost]

Exactly. Laser focus. Apple has lost it's mojo under Tim. I like what he is doing on the social, environmental and political side of things - but has it come at the cost of no longer producing "insanely great products"?

How can you say they seem desperate and lost? They're in the top 2-3 in the world in terms of company value.

 

[ShinySteelRobot]

They should of made it look "new".

Alternately, they should've made it look new.

 

[Savor]

Foe every poster who loves "4 iPhones and enjoying their current SE, they are far more outnumbered by consumers who can't go back to that small screen size anymore. Maybe back in 2013, it was still acceptable. In 2016 after a few years being accustomed to "4.7 and "5.5, that isn't the case anymore for most consumers. Face it, Apple is catering to what is now becoming a niche market that is no greater than Windows Phone. Cult following won't save it. Don't expect much growth in it or a mass exodus from the larger displays anytime soon. Perhaps Huawei catching both Apple and Samsung in market share by 2021 isn't such a pipe dream after all...

The biggest concern isn't really about the SE lackluster sales or if it had a different design or whatever. Apple could have changed it up a little outside and it still wouldn't sell as well since most buyers aren't going back to small screens anytime soon and not for $400-$500 bucks with lesser productivity and a worse viewing experience for media. The biggest concern is that maybe the iPhone 7 series will have lackluster sales too and Apple may have peaked already with iPhone sales. Whoever wanted an iPhone at whatever size, has one now. The signs of a decline is imminent now.

But I think all smartphones especially in the premium segment will start to struggle now. Phones have become homogenized. Your phone at whatever price range looks and acts the same like everyone else's with subtle differences in real world performance. The bubble got bigger and is ready to burst. Even the most dense Apple fanboy has to admit nobody stays on top forever and ever. What goes up must certainly go down too. To think Apple will have record sales every single year for the next decade or more seems unrealistic. It would be like expecting the New York Yankees and Los Angeles Lakers to win a championship every year.

Most people will hold onto their phones longer than before. The peak and luster of having the newest phone is on the decline. Again, the biggest worry isn't the lackluster sales of the SE or the same, lazy design it has. A design is such a superficial answer that will grow tired very quickly. Some of us expected it that way since smaller devices aren't going to make a comeback anytime soon no matter what it looks like. People need to see the BIGGER PICTURE and isn't on lackluster sales from a "4 iPhone. The biggest worry is iPhone sales ready to go on a decline in this oversaturated market? A proud history won't save them.

The decline of iPad sales started last year. The decline of iPhone sales could be happening this year. You shine and then you decline... Ask Motorola, Nokia, and BlackBerry about that.