iPhone SE Sales Forecasted as 'Lackluster' Over First Weekend

[Laserducky]

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.

While I agree with your assessment about why Motorola, Nokia and Blackberry have been all but wiped out, Apple has one thing going for it, which is going to be hard to make a dent in : its brand image and customer goodwill : we didn't buy Nokia, Blackberry or Motorola with the same passion and expectations as buying an iPhone. Looking back couple of decades for example, we also didn't just buy Nokia because of how much we liked the brand or its products : there just weren't enough manufacturers to choose from. Hence Nokia built its erstwhile empire and promptly allowed itself to rest on its laurels which led to its eventual demise.

Cut to the current day and we have a complete range of Android and iOS products and we still buy Apple products by choice even though we know we are paying a premium for a premium product. Apple will do anything and everything to ensure that we remain 'loyal' to their products which is why they go out of their way to offer generous return policies, product warranties/replacements and generally excellent customer service.

At the end of the day this is what constitutes their brand power and image and they will protect and grow it at any cost : it is one of the few things that differentiate the increasingly saturated smartphone market : You can buy a Samsung/LG/HTC but will you get the same level of after sales service or support ? Unlikely.

Cheers !

 

[Palladium SG]

Cut to the current day and we have a complete range of Android and iOS products and we still buy Apple products by choice even though we know we are paying a premium for a premium product. Apple will do anything and everything to ensure that we remain 'loyal' to their products which is why they go out of their way to offer generous return policies, product warranties/replacements and generally excellent customer service.

At the end of the day this is what constitutes their brand power and image and they will protect and grow it at any cost : it is one of the few things that differentiate the increasingly saturated smartphone market : You can buy a Samsung/LG/HTC but will you get the same level of after sales service or support ? Unlikely.

Cheers !

Ask Sony how much money they lost from their Xperia Z Compacts that the Android fanboys raved so much and somehow didn't bought. Talk is cheap while wallets fly in the other direction to Apple.

Let's put things in context, Apple's "niche" of 30M 4 inchers sold last year has a revenue at the same scale with LG and Sony's entire smartphone business while being far more profitable. Doesn't take a genius to conclude that the much better specced SE will sell at least just as well.

 

[Savor]

The wrong questions are being asked like if Apple designed the SE better when most consumers and manufacturers should be asking where will the industry be in five years? Will it still be healthy or will it decline too like desktop computers? Smartphones basically superceded desktop/laptop computer for general computing but have sales peaked already? In any industry whether in entertainment or technology, you lose the coolness factor. You lose luster. You lose your edge. Whether watching an icon like Paul McCartney play guitar behind Rihanna and Kanye West or watching George Lucas go completely senile with the Star Wars SE and Prequels.

Apple is turning 40 THIS year. There have been far more older companies who have all went through a struggle or during lean times. IBM, Sony, McDonald's, Nintendo, and even Disney. Life isn't about happy times all the time. There is a time of struggle with it. I don't expect Apple to go back to their dark times in the mid-1990's when Apple fanatics saw Bill Gates giant mug on screen and people gasped that Big Brother is watching. I don't see Gil Amelio dark times. But Apple shouldn't keep looking up. Sometimes they need to look what is below their feet too before crashing back to Earth.

I expect the SE to sell much better after September closer to the Holidays since nobody expected its March release. But will SE ever bring back the small smartphone trend? Nah. It is only catering to a specific market now that most of world's population have seen the BIGGER PICTURE. Apple can sell 30M-40M of the SE and still won't be enough to match the sales from the bigger smartphones across all platforms. Most of us have already moved on from that size and improving the design won't matter since most people don't give a damn staring at the design all day. They go back to USING their device just like if it was an UGLY device too. It's a tool to most. Not artwork. Only a better design can only fulfill a person's shallowness for so long before having to depend on it for actual usage and not admiration for what it looks like.

The idea that Apple will dominate forever and ever in an oversaturated market and to expect record profits and sales every single year? Get real. Not happening. It has never happened to any other older and iconic brand either.

 

[macsrcool1234]

if sales are lackluster it's because they didnt make enough. i cannot find a damn phone anywhere near me.

 

[maxsix]

Considering all NYC stores have been sold out since Thursday, people are clearly interested.

Wealthy New Yorkers bear not the slightest resemblance to the average Apple iPhone buyer across the country. Along with a fading interest in shiny aluminum Apple phones, the greater public have never had more choices when selecting a brand new smartphone, especially those less expensive than Apple offers.

 

[Michael Scrip]

The idea that Apple will dominate forever and ever in an oversaturated market and to expect record profits and sales every single year? Get real. Not happening. It has never happened to any other older and iconic brand either.

Who was saying Apple will dominate forever and ever?

Anyone with half a clue should know that it's a silly thing to even hope for.

You're correct in suggesting that Apple might not top its all-time yearly sales record of 230 million smartphones. They might sell *only* 200 million units this year.

But gosh... the list of companies who can sell at least 200 million smartphone units is small. And the list of companies who can sell that number of relatively high-priced smartphones is even smaller.

Apple has one advantage that no one else has... they sell iOS phones. And they seem to be pretty popular.

The problem Android OEMs have is they all sell basically the same thing. It's the same sorta thing that happened to the PC market. There were dozens (hundreds?) of companies all selling Windows machines. It doesn't really matter if you buy a Dell or HP laptop because they both run the same software. Similarly... it doesn't really matter if you buy a Samsung or an LG smartphone because they both run the same software.

But Apple has their own unique platform. And enough people like it.

Apple may never break their own sales records ever again... but their sales will still be voluminous.

 

[ani4ani]

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?

Is this the same S7 that was launched globally less than a month ago?

 

[kahkityoong]

Wish sales were even more lackluster, then maybe I would have been able to find one in store while in Sydney on the weekend (despite the sales person doing a call-around).

 

[zeesix]

I have both an SE and 6s sitting on my desk. I'm still trying to decide which one to keep. I personally prefer the 4 inch screen size, but what I've noticed is a lot of apps aren't optimized for that screen anymore. I notice a lot of wasted white space in many apps that actually makes it seem like the screen is too small.. which is unfortunate. Also, overall, I don't like the shortcomings of the SE... slow TouchID, worse display, no 3D touch, no barometer, rattling power button. I really hope they release a new 'mini' model alongside the other two sizes in September. Wishful thinking, I know.

 

[Janichsan]

On the one hand, there is this analyst bla-bla.

On the other hand, there is my brother, who works in an Apple store in Germany, who said the iPhone SE was sold out already on the first day.

Yeah, I know. "Anecdotal evidence"…

 

[Ries]

On the one hand, there is this analyst bla-bla.

On the other hand, there is my brother, who works in an Apple store in Germany, who said the iPhone SE was sold out already on the first day.

Yeah, I know. "Anecdotal evidence"…

All two of them sold out?

 

[johngordon]

Why would anyone buy a phone that has last year's technology, cheap (sort of) as it may be? I think it's highly likely that there will be a 4-inch 7 in September, leaving the lineup as 7+ (5.5"), 7 (4.7"), 7- (4") and 6S+, 6S, SE.

Because for the most part it isn't last year's technology. Well, technically I guess you're right, but you know what I mean - for the most part it is the current high end technology.

I'm probably going to get one because, after my Apple trade in for my 5S, I can get a 64GB for £304. Way cheaper than a 6S, and the only meaningful sacrifice to me is 3D Touch. I never use the front camera, and can live with Touch ID taking half a second longer to unlock the phone.

I have small hands, so still prefer the design over the 6 models. Plus I think they are a little too glossy, slippery in the hand. Personal preference of course, and had the SE not come out, I would almost certainly have upgraded in September.

In the context of future iPhones, it may be more of a choice, but in the context of iPhones available today it will be a great first for a lot of people.

If the early rumours are now that 7 will only be a modest redesign, and bigger changes with OLED will arrive in 2017, then upgrading to the SE now, and looking again in 2017 makes perfect sense for me.

What's with the massive CE text on the back though? When did that change happen? Seems all the more odd as there was talk of it going digital in the settings at one point, but now its even bigger than it used to be. (Maybe its a UK / Europe thing?)
[doublepost=1459845611][/doublepost]

Apple didn't even try. They could have eliminated the bezel and made this a 4.3'' brand new phone.

They could have, but then the R&D would have added quite a bit to the price, in which case what would have been the point?
[doublepost=1459845804][/doublepost]

Sure they can, it's only what about $25-30/month give or take? Buying a SE full price seems like a waste versus just financing a flagship with much better specs. But it's already been established that many would choose the SE because of it's size and not it's specs.

But the 6 doesn't have much better specs though. Especially if you don't see screen sizer as an objective spec.

I'm getting one because it has much better specs than my 5S, but still in my preferred design / size.

 

[ouchiko]

It's a niche phone - why would anyone expect anything different. Personally, the whole point of a "new" phone is the shape, design etc, it's been a while since I was bothered by the performance of the internals that much.

 

[johngordon]

Wish sales were even more lackluster, then maybe I would have been able to find one in store while in Sydney on the weekend (despite the sales person doing a call-around).

Same in the UK.

On the subject of sales though, its hardly surprising - there probably isn't the same pent up demand there would be for a new flagship device. Its much more likely to be a slow burner, with appeal over time for people as and when they feel the need, or have the money, to upgrade.

I expect the 5S sales in the last year will have been more oven throughout the year than the 6S. Maybe a spike when the 6S came out and the 5S price dropped, but probably not as big as the 6S spike.

 

[StoneJack]

I think that sales are, if anything, exceptional for small device. If Apple managed to sell 10 million of them (given China's alone 3.4 million), then its already 1/3 of pent demand (30 million of 5S sold last year), plus it will probably accelerate sales of anything 5S left in inventories, thus cleaning the distribution channels and preparing them for onslaught of 7.
With SE, 7 and 7Plus, Apple will have a very full line of phones, for every consumer.

 

[555gallardo]

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

I pointed out the specs thing specially to people mentioning how "it's having last-year specs"

 

[johngordon]

I'm the same way. I'm not going to be able to justify that cost every two years if my phone is still technically working fine.

Other benefit of the SE? My wife probably won't notice!
[doublepost=1459847669][/doublepost]

Reading through the thread, it is worthy of the question, do folks really want a 4" screen or do they want a phone the size of 5S?

I guess that will depend on the person. I do like the 5S because I can use it with one hand. If th phone was the same size, and the top / bottom bezels were used for a larger screen, then even that it would become more awkward for me.

But it is amazing how much difference even a mm or so makes in thinness. Recently got my wife an iPod touch for the car, and it feels really thin in comparison in the hand, but there can't be much more than a mm in it.
[doublepost=1459847736][/doublepost]

Apple announced the iPhone SE on March 21, 2016

Prior to that... Apple was still selling the iPhone 5S with the A7 processor and 1GB of RAM for $450.

But the iPhone SE has the A9 processor, 2GB of RAM, Apple Pay... and it's only $400. That's great, right?

To the people who say iPhone SE sales are lackluster... are they better than what the iPhone 5S sales would have been today?

Should Apple have continued to sell the older slower iPhone 5S for $450 instead?

I'm just trying to figure out what the problem is.

Apple has always offered different price points. But instead of having a two year old phone at the entry-level price... there is now a very powerful modern-era phone. And it's cheaper too!

How can that not be a good thing?

There is no problem - its a great thing.
[doublepost=1459847945][/doublepost]

Well there are two main reasons for this. One is apple was too lazy to change the design. They shouldn't have stuck with the 5s design. Thr internals may be fresh but the design isn't fresh. I think apple should have given the SE thr iphone 6 make over.

The other reason is many people have already been using the 4.7 iphone. It is difficult for many to go back to a smaller phone once you've have a bigger one. I remember when I went from a note 2 to iphone 5. I felt foolish using it. I winded up ditching it 2 weeks later for a galaxy s4

First reason would have hiked up the cost of the SE. Also, there are probably people who have been holding on to a 5/5S because they - gasp! - prefer that design. Having the SE in the 6 design would have eliminated that choice.

Second reason - the SE isn't really aimed at people with a 6/6S. (Although there have been anecdotal reports of people switching that way.)

I would have upgraded to a 7 in September - but not necessarily because I prefer a larger screen, but because taking everything into account a 4.7" iPhone would be my preference over anything else.
[doublepost=1459849691][/doublepost]

No, we've had this bullsh*t before with the same analysts, who claimed that the 5C was a flop. It wasn't. It sold great. The SE will sell well.

This is the trouble - if everything is compared to the record breaking sales of the single most popular consumer electronics device ever made, then of course the sales of everything else will pale into lacklustre comparison.

That this is so often spun as The End Of The World For Apple is completely insane.

As you say, the 5C was anything but the flop / disaster it is widely regarded as - wasn't it one of the five biggest selling phones globally of the last couple of years?
[doublepost=1459850061][/doublepost]

The SE fully meets my expectations, just because they are not the same as yours doesn't make them "low." One could argue that a sucker is someone who pays $250 more for a phone for a few feature that may or may not be important to people.

Exactly - is 3D Touch, a better front camera and a barometer really worth $250?

Maybe to some people, but not to me, and I suspect not to a lot of other people.
[doublepost=1459850258][/doublepost]

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

I don't know - if i was in business, and I sold 1/3 of my newly released product within a few days, I'd be very happy indeed.

Would you not be?

I ran a 12 second 100m last week - a personal best I was very happy with, until my Dad pointed out how lacklustre it was compared to the 100m world record. Put a real dampener on the whole thing.
[doublepost=1459850531][/doublepost]

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.

I'm in the same boat as you. At first, I always assumed I would get a 7 in September, but the SE is pretty tempting for the cost. But then I kinda thought if the SE was good enough, would the cost really be worth it compared to my 5S.

But in the end, after factoring in the Apple trade in of £135, I think its probably worth it. The battery gets through a normal day, but if I go up to London for the day, and am using the phone a lot, its usually dying on the train home. So getting 30% more out of the battery, plus a bit more due to the age of my 5Ss battery is possibly the single biggest factor for me. Add in the better camera, improved performance (have been noticing a bit of lag opening apps recently) and Apple Pay, then its probably worth it for £300.

 

[joe-h2o]

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

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

Right here. I bought 64GB on preorder as soon as it was available.

My wife is also upgrading her 6 into an SE in two weeks when her contract is available for update.

A refined 5S is exactly what we wanted.

 

[joeblow7777]

I always figured that the SE was a niche model. I'm not sure why anyone expected huge sales.

 

[Palladium SG]

I pointed out the specs thing specially to people mentioning how "it's having last-year specs"

Clearly "last year specs" of A9/12MP for $400-500 as a choice is such a ripoff when nobody in Android can even manage to deliver the same thing in a 4" phone despite a gazillion more manufacturers.

 

[JohnnyW2K1]

The only features the SE doesn't have that the 6S does is:
1. the screen
2. 3D touch
3. support for band 28 or 29 for LTE I believe.

It's also missing 2nd gen TouchID, the barometer, and the better front-facing camera.

 

[bollman]

Funny, I'm the other way around. I'm a Fandroid and I wanted to like Z5C, but it's too meh and a bit too expensive for what it is. While SE is seriously tempting right now.

Well, in Sweden, all-in-all the Z5C costed me $206 which I have to say is a pretty good price for that phone.

 

[johngordon]

I'm really not sure why the writers here keep comparing the iPhone SE to the Tesla preorder. It's like comparing Apples and loose meat sandwiches. Apple will sell tens of millions of iPhone SE before the year is out and Tesla won't even ship a single Model 3 until a year later. I get that some of you are excited about your Model 3 and it really is great news and I'm happy for you, but it really has no bearing on anything to do with the iPhone, and is only of passing interest in general as Apple is many years away from competing in that space.

Here's the thing about the iPhone SE that people need to realize: Apple is going to sell a lot of these things, but it's going to be a grind over time. The type of people who buy a phone like this aren't the ones who first rush out to upgrade. Sure, there will be some, especially among those clamoring for a new iPhone in a small form factor. But at that price with a few reduced features, you're not going to get huge day one sales. You're going to get solid, sustained growth over time. Especially in emerging markets. My wife is in the market for this iPhone. I asked her if I should preorder it, and she said "No, I'll upgrade to it at some point, just don't worry about it for now." And she's still using an iPhone 5. So whatever, up to her. She was glad that they made it and she's going to buy it, she just doesn't have this need to get it right away? That's something that people around here need to understand. Normal people just don't care as much. And why should they? It's just a phone.

It was really hard for me to type those last two sentences, lol. But it's true for most people.

This is bang on the money. It almost certainly will sell a lot over time, just not to the same audience clamouring for the next new thing.

The 5C did pretty well like that, and the SE is a better value proposition in every way, and unlike the 5C will probably appeal to many who might otherwise have gone for the flagship model.

 

[JohnnyW2K1]

Can someone explain this to me: Sales of the SE are reportedly "slow", yet it's sold out in every country so far mentioned (US, England, Germany, Australia) and probably more.

Surely that means the demand has exceeded Apple's expectations?

 

[johngordon]

Can someone explain this to me: Sales of the SE are reportedly "slow", yet it's sold out in every country so far mentioned (US, England, Germany, Australia) and probably more.

Surely that means the demand has exceeded Apple's expectations?

They have them back in stock in my nearest Apple Store - at least I assume they do as the website is saying available to pick up today.

I'm on my way now - if they've run out by the time I get there, that would suggest high demand still.
[doublepost=1459857047][/doublepost]

The SE also uses the exact same screen as the 5S, so SE buyers are basically paying for screen technology that is nearly 3 years old.

Let us know when screen technology evolves to the point where we can see razor sharp text and great looking non fuzzy images.