iPhone SE Sales Forecasted as 'Lackluster' Over First Weekend

[Jax44]

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".

Ah, you obviously don't speak analystian.

 

[johngordon]

I really hope there isn't anyone that's surprised by this. Sure, there's a market for a small phone. We've seen lots of people on these forums happy to be able to get an updated 4" device. But sales and marketing trends have clearly shown the larger form factor is, far and away, the preferred device size.

Not necessarily - sales have shown that flagship devices are preferred.

I would have upgraded to a 7 in September, not because my preference was for a larger screen, but because my preference was for a new flagship iPhone.
[doublepost=1459857814][/doublepost]

no 3D touch, old design -> crippled product when compared to flagship 6S. What is confusing about that?

The part about not having 3D Touch crippling a device.

I'm using a 5S right now and it doesn't appear to be crippled in any way.

 

[IbisDoc]

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

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]

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

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]

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]

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]

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]

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.

Not if I were the Usain Bolt of new product releases.

 

[johngordon]

LOL, Nailed what?

When in 4 months time the iPhone 7 is delivered, the iPhone SE will sales will tank even further than Donald trump's reputation for being a douche. You guys are just losing sleep when you realize you just got your reality distorted AGAIN.

You're still missing the point that the different phones are aimed at different people.

Or maybe you think that come September all the people who prefer smaller screen; and / or prefer the design; and / or don't want to spend an additional $250+ on a phone will change their minds?

 

[Shanghaichica]

I didn't expect record breaking sales figures. It's a niche product. I think it will sell steadily over time and will probably sell well in emerging markets. However the 4.7/5.5 iPhones will remain the big sellers.

 

[johngordon]

A sucker born every minute, lol. this is why Apple makes billions of dollars! Low expectations from its customers nowadays...please fire their marketing team asap - but that won't happen because their marketing team obviously is working successfully at full throttle 😎

So anyone with a different opinion, or preferences to you is a sucker?

Um, OK.

 

[cwwilson]

Guys I figured it out. People don't want this SE that they feel is too old and slow. Here's what they want:

Completely new design all around
4" 4K OLED screen
Apple A10 chip
4GB RAM
16MP iSight camera with OIS
8MP front cam
3D Touch
Waterproof casing

Prices (in full)

32GB $99
128GB $199
256GB $299

So yeah, if this phone was released instead of the SE, maybe then people would finally be happy. Of course they're also living in a fantasy world.

 

[dysamoria]

I already bought a new iPhone recently. I'm still paying for it. If this SE phone existed then, I might've purchased it because the 6 series is too big for ergonomics. The double touch of the home button to lower the screen is admission of the fact. But most users don't care if they have to use two hands (the double touch feature is too obscure; I know it's there and I barely use it myself).

 

[Palladium SG]

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.

It's rather amazing how well the 5C managed to sell despite how thoroughly unappealing it was unlike the SE.

 

[lkalliance]

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.

Although I agree with some of this, I feel this, like other posts, creates straw men to knock down. I, for one, do get a pleasure from a good superficial design. It's a little, tiny thrill each time I interact with a product, any product. I like putting on a pair of jeans I feel looks good, or using cookware that is pleasant to hold or look at, or slinging a backpack over my shoulder that feels just right or looks nice. Perhaps this is shallowness, I'd warrant, but it's a small part of my evaluation of a thing.

With my phone this is a big deal, because I interact with it many times a day. So that tiny, mostly subconscious thrill is present often. But it's not everything: I'm not a fan of the SE's styling, heft or hand feel: my 5c is much better at all of those things. But the technological step forward is too big at this point to ignore. So now I'm looking for cases to bridge the gap.

I know that was not the main point of the post, just a part I reacted to.

 

[rui no onna]

It's rather amazing how well the 5C managed to sell despite how thoroughly unappealing it was unlike the SE.

Design-wise, the 5c is actually one of my favorite iPhones. I didn't have to put a case on it because it already felt really comfortable in my hand. Only wish matte black was an available color option.

 

[Freida]

Not necessarily - sales have shown that flagship devices are preferred.

I would have upgraded to a 7 in September, not because my preference was for a larger screen, but because my preference was for a new flagship iPhone.
[doublepost=1459857814][/doublepost]

The part about not having 3D Touch crippling a device.

I'm using a 5S right now and it doesn't appear to be crippled in any way.

5S was released ages ago and it was flagship phone. SE was released after 6S and it doesn't have all 6S features therefore it is crippled device when compared to 6S! If SE is the same as 6S (including design) then we can talk about it. Until then it different product with different design that is crippled down for various reasons (cost etc.)
When 7 comes in and Apple does offer 4; 4,7 & 5,5 then we can talk about it.
Is it clear now?

 

[MacBH928]

They can't break sales record every time and grow into infinite... there is a limited demand..

as for Pakistan, India, and China...
Usually those who cant buy the $600 phone can't even buy the $400 phone.

 

[cdarlington1]

Got rid of my iPhone 6s+ 128gb for a iPhone SE 64gb. Couldn't be happier with it.

 

[lkalliance]

I think the disconnect between the story and the anecdotal evidence on the thread has to do with which models are being sought. I know this breakdown is US-centric, but:

5 networks (AT&T, Verizon, T-Mobile, Sprint, no sim)
4 colors (Space Gray, Rose Gold, Gold, Silver)
2 sizes (16 GB, 64 GB)

That makes 40 combinations. I don't know anything about networks in other countries, but even if you have only one network, you still have two choices (on-network and sim-free), which still gives you 16 combinations.

Back to the US...I'd expect that exactly four of those 40 combinations are really popular:

AT&T / Space Gray/ 64GB
Verizon / Space Gray / 64 GB
AT&T / Rose Gold / 64 GB
Verizon / Rose Gold / 64GB

You could debate if there were other popular models or whether Rose Gold is really that popular (according to the salespeople I spoke with it is)...but you could go about it the other way: wipe out all the 16GB options and half of the 40 are gone; wipe out T-Mobile and Sprint and sim-free and you've wipled out, what, a third or more of the rest? Wipe out the least popular colors...

So any given individual has a poor chance of finding the model he wants in stock, as he is very likely to want one of the in-demand models. But an analyst checking in at an Apple Store might just ask if they have any in stock. "Yes, lots."
[doublepost=1459866635][/doublepost]

It's rather amazing how well the 5C managed to sell despite how thoroughly unappealing it was unlike the SE.

The 5c was way more appealing, design-wise, than the SE. Not tech-wise, of course. I passed on the 6 and 6S because I did not like the size, did not like the design, and figured that the tech would soon come to a 4" phone (and for a while there, early rumors suggested a 6c was on the horizon). But I would have traded off the size and even some of the tech we did get for a 5c-like enclosure, I like it that much. If we had gotten a 4.7", A8-based phone with Touch ID and Apple Pay, I might have preferred that over the SE we got.

 

[tyche]

Guys I figured it out. People don't want this SE that they feel is too old and slow. Here's what they want:

Completely new design all around
4" 4K OLED screen
Apple A10 chip
4GB RAM
16MP iSight camera with OIS
8MP front cam
3D Touch
Waterproof casing

No barometer? Pass.

 

[rui no onna]

So any given individual has a poor chance of finding the model he wants in stock, as he is very likely to want one of the in-demand models. But an analyst checking in at an Apple Store might just ask if they have any in stock. "Yes, lots."

Last Friday (April 1), our local Apple Store had plenty of 16GB in Silver and Rose Gold but I wanted AT&T, Verizon or SIM-free 64GB (Space Gray preferred but I would've taken any color they had available). Checked again yesterday and they only had one model available - Sprint 64GB Space Gray.

I think the disconnect between the story and the anecdotal evidence on the thread has to do with which models are being sought.

Honestly, I don't see any disconnect in the story and reality. The problem with the article is expectations. In relatively rich developed nations, you're just not gonna see the same demand for the SE as for flagship models. The SE just isn't going to set record-breaking launch sales like the iPhone 6 and 6+ have. Given the scarcity and lead times for online orders, I think Apple has actually underestimated demand for the SE.

 

[mrmyk]

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

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

Here is one, My wife loves her new phone, I do wish it had the rounded edges, never liked the 4-5 cases at all. and the one thing it's missing is Force touch. but at least her processor is up to speed, and it's still small enough for her pocket.

 

[ursokind]

I won't be surprise...

First the idea to launch this product is :
1. Maintain the market of 4-inch lover
2. Compete with china products in emerging markets (china, india. south east asia except singapore)

Where did they launch it ? USA, Singaore, Hongkong, UK, Japan, Australia which obviously consists of new flagship iphone lovers.

Looks like there is a little bit of inconsistency between their target market and their actual distribution countries

Don't get me wrong I love iphone... It is the best mobile phone I have ever used in my life and I don't see myself having another brand

But... since iphone 6, due to currency depreciation. it costs 30% - 50% more expensive than it used to be... It doesn't make sense to me if an iphone costs the same as a motorbike... no matter how much I love the product...

I almost forced myself to switch to any affordable android products until suddenly apple launched SE

I did pre-order through black market online store... i am getting it at the end of this week

Very sad having need to depart with my 4S... no dent, no scratch, no crack... however it is just too slow nowadays...

trust me apple won't release any newer 4 inch phone until march 2017... releasing a more powerful 4 inch within 6 months will simply kills apple credibility....

 

[johngordon]

5S was released ages ago and it was flagship phone. SE was released after 6S and it doesn't have all 6S features therefore it is crippled device when compared to 6S! If SE is the same as 6S (including design) then we can talk about it. Until then it different product with different design that is crippled down for various reasons (cost etc.)
When 7 comes in and Apple does offer 4; 4,7 & 5,5 then we can talk about it.
Is it clear now?

Actually no, not really.

I don't know what definition of "crippled" you are using, but it isn't one I know.

I am now using an SE, and can promise you that although it doesn't have 3D Touch, the front camera isn't as good, and the Touch ID is half a second slower, the phone doesn't appear to be crippled.

 

[Leonard1818]

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

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

They're either stuck in their 2-year contract that they signed in Sept. or they are trying to sell their iPhone 6s or 6s+ to go back to the smaller device. Personally, I didn't see the sales of this skyrocketing out of the gate... My wife would have LOVED the SE... back in September when she needed a new phone. Now she has a 6s instead, is ineligible for an upgrade until our contract is up (yes, I'm still on 2 year subsidized contracts), and by then will be adjusted to a larger screen and won't want to go back to a smaller one. In her case, it's "too little, too late" - literally!

 

[andreyirra]

I'm confused. They are promoting it as having color matched apple logos but I remember the gold iphone 5s had an golden apple logo. Do I remember incorrectly?

 

[johngordon]

Back on the demand - anecdotal of course, but I have just had a couple of hours getting set up in the Birmingham UK store. At the set up table there was a steady stream of people getting an SE - about 10-12 in that time. Interestingly, at least three were moving from a 6 or 6S.

 

[TallManNY]

I predict not only will this price drop not happen, but Apple will create a new even higher priced tier with its "iPhone Pro."

Maybe. But right now the $399 iPhone SE has the most important internals of the $649 iPhone 6s. And its battery life is better. At 40% cheaper, it really is the best value. When the 7 comes out in September, maybe that phone still sells for $649, but the 6s at $549 is going to be a hard sell once it isn't the bright and shiny new thing. The 6 will probably be discontinued. Frankly, no one should be buying that now at $549.

An 7 Pro at $699 is really going to look like a stretch against the $399 iPhone SE. Keep in mind, that if Apple does what it has done in the past, the internals for the 7 will not be that big an upgrade over the SE/6s internals, namely the CPU will not be hugely improved. The RAM won't be increased. And the SE's battery life will probably still beat the 7's battery life. Though not as much as it beats the 6s now.

 

[Gudi]

I already bought a new iPhone recently. I'm still paying for it. If this SE phone existed then, I might've purchased it because the 6 series is too big for ergonomics.

And the 6 series has two hours less battery life, sorry for pointing out. 😳

I'm confused. They are promoting it as having color matched apple logos but I remember the gold iphone 5s had an golden apple logo. Do I remember incorrectly?

The 5s logo was polished into the aluminum itself ( so it had the exact same color ), while the SE logo is a cut-out with a color matched stainless steel inlay ( a slightly different color and material ).

New Apple logo looks cool.​