iPhone SE Sales Forecasted as 'Lackluster' Over First Weekend

[Shanghaichica]

I don't think the iPhone SE was designed for emerging markets. Yes... it's the cheapest "new" iPhone ever released... but it's still $400.

There are Android smartphones that sell for $100 in emerging markets.

The iPhone SE simply replaced the $450 iPhone 5S while coming in at $50 cheaper. That's great... but it's far from a "budget" world phone.

The average selling price for Android phones worldwide is $215

iPhone is $691

So again... I don't think Apple is targeting emerging markets... even with the cheaper iPhone SE.

It can do well in places like China and India. Although the Chinese went gaga for the iPhone 6/6S not all of them can afford those prices. I think the SE is a way for those people to get a piece of the iPhone action at a lower price. There will be many in India who also can afford the SE but not necessarily the 6s. Of course many African countries will still be priced out and will have to stick to the bargain basement android phones.

 

[The Game 161]

Not a huge surprise

Only a small amount like phones that small

 

[Michael Scrip]

It can do well in places like China and India. Although the Chinese went gaga for the iPhone 6/6S not all of them can afford those prices. I think the SE is a way for those people to get a piece of the iPhone action at a lower price. There will be many in India who also can afford the SE but not necessarily the 6s. Of course many African countries will still be priced out and will have to stick to the bargain basement android phones.

Yep. There are plenty of markets that can afford a $400 phone.

But is it that really much different than a $450 phone?

My point was... the iPhone SE may be a little cheaper than the outgoing iPhone 5S... but it's not gonna move the needle that much in most emerging markets.

The iPhone SE was simply not designed to go up against $100 smartphones from Xiaomi and others.

 

[johngordon]

Still sold out here in London.

I noticed they did have some in Oxford St and Covent Garden around lunchtime, so I think they are probably getting new stock in fairly quickly.

Think Birmingam was showing as sold out again by the end of the day. So looks like reasonable demand, but if showing as available in the morning a good chance of getting one that day without having to queue first thing.

I only want in person rather than order to pick up because I wanted to do the trade in (£135 for a 64GB 5S).
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...but you still bought it? You loved the phone before it, but still bought the 6s?
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I think it was Apple who said there were 30 million folks ( or was it a third of iPhone users who didn't want a big phone) craving for a new 4" phone. Personally, I don't think many want a 4" phone, they just a big screen in a small form factor, something that Apple has not managed yet.

No - they said they sold 30m 5S's in the last year, not that there were 30m people pent up to buy one.

 

[Swordylove]

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

Wow. What's the catch? Was it subsidized or something? I would've bought it too if it's priced the same here. The Z5C is around $535 in Malaysia right now.

 

[Mac 128]

I don't think the iPhone SE was designed for emerging markets. Yes... it's the cheapest "new" iPhone ever released... but it's still $400.

There are Android smartphones that sell for $100 in emerging markets.

The iPhone SE simply replaced the $450 iPhone 5S while coming in at $50 cheaper. That's great... but it's far from a "budget" world phone.

The average selling price for Android phones worldwide is $215

iPhone is $691

So again... I don't think Apple is targeting emerging markets... even with the cheaper iPhone SE.

Apple is positioning the SE as a budget world phone. But it starts as a budget US phone, despite being he functional equivalent of Apple's current flagship.

That means for a minimal investment, Apple has a phone that will have the same 3 year lifespan over which to depreciate the value. But there was still an investment in R&D to create the phone, and at least for the first year they're going to recoup some of the cost, which may explain in part some of the higher worldwide costs.

What Apple has done is create a much better user experience for budget, and presumably entry level customers by putting current tech in it. In the interim, for Apple's more pragmatic customers who prefer a 4" phone and don't care about having newly redesigned 4" phone, the SE serves as an effective upgrade to the current flagship specs, instead of waiting for Apple's next newly redesigned 4" next generation phone, which is surely coming.

I expect to see the SE drop to $299 next year after the 7 comes out, and $199 after the 7s comes out. Once the A9 becomes last year's chip, Apple will be in a better position to drop the price worldwide as well. Moreover consider Apple only just last month stopped selling the 4s and 5c in India, the SE will likely have something like a 5 year shelf life internationally, and considering the technology as compared to those earlier iPhones, I'd expect it to be a far better experience as compared to the then current flagships.

 

[Palladium SG]

I don't think the iPhone SE was designed for emerging markets. Yes... it's the cheapest "new" iPhone ever released... but it's still $400.

There are Android smartphones that sell for $100 in emerging markets.

Remember that "hardly anybody can afford iPhone in poor China" meme?

http://digitimes.com/news/a20160316PD202.html

"Apple's shipments rose 45% on year, ramping its share from 10.1% in 2014 to 14.3% in 2015" (only 0.6% behind the king of $100 phones Xiaomi)

So, who is eating crow now?

 

[Michael Scrip]

Remember that "hardly anybody can afford iPhone in poor China" meme?

http://digitimes.com/news/a20160316PD202.html

"Apple's shipments rose 45% on year, ramping its share from 10.1% in 2014 to 14.3% in 2015" (only 0.6% behind the king of $100 phones Xiaomi)

So, who is eating crow now?

Well... with 1.4 BILLION people in China... there's gotta be someone who can afford an iPhone from $400 to $900

But iPhones still only represent 14% of smartphone purchases in China. I'm not sure you've disproved the "hardly anybody can afford iPhone in poor China" meme

I'd be curious to know what kinds of phones make up the other 86%

I would guess they are phones that are much, much lower than Apple's $400 entry price. I'd say most smartphones in China sell for around $200 or less.

Are you sugessting that there are tons of people in China who could afford a $400 iPhone... but chose a $100 Xiaomi instead?

I find that hard to believe... considering Apple is an aspirational brand in China.

I would say people buy $100 phones in China because that's all they can afford.

 

[recoil80]

SE was never going to be quick out of the gates,

But it'll catch up with steady sales over time.

This.
SE is not an iPhone people would stay in queue for. They'll sell a lot of SE in China and via carriers who'll offer it for free.
I'm sure there is a market for 4'' phones but is not made for enthusiasts who change their phone every year.
Even iPhone 5C was called a flop but they sold millions of them throughout the years, and SE is basically a revamped 5S so very low R&D cost for this model, they don't need to sell hundreds of millions of those phones.

 

[Palladium SG]

This.
SE is not an iPhone people would stay in queue for. They'll sell a lot of SE in China and via carriers who'll offer it for free.
I'm sure there is a market for 4'' phones but is not made for enthusiasts who change their phone every year.
Even iPhone 5C was called a flop but they sold millions of them throughout the years, and SE is basically a revamped 5S so very low R&D cost for this model, they don't need to sell hundreds of millions of those phones.

How about the simple hypothesis that anybody who wanted one on the first day would have preordered instead of wasting time waiting outside an Apple store and potentially seeing obnoxious people and leaving empty handed.

 

[Mac 128]

How about the simple hypothesis that anybody who wanted one on the first day would have preordered instead of wasting time waiting outside an Apple store and potentially seeing obnoxious people and leaving empty handed.

But then this would apply to every Apple iPhone release.

 

[Goldarn]

It's not the phone for everyone — gone are the days when one phone was released and everyone wanted it. Personally, I wanted to upgrade from my 5S and I got my SE on the day it was shipped. I am very happy with the SE. I like that my 5S case fit the new phone. I like that it's a speed demon compared to the 5S. I like that I can take better pictures and use Apple Pay. But I didn't want a big screen, and I was willing to wait. I think the SE will be a solid part of the lineup. It certainly was never gonna outsell the various iPhone 6 lines.
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there are millions and millions of people out there just aren't smart enough to understand what this phone can offer just because it looks the same as a couple of years ago.

And apparently those include every pundit, stock market analyst, and tech writer. Sad.

 

[WigWag Workshop]

How do these folks know how well or terrible the SE is selling? Did I miss Apple releasing the number of units sold? What is the information based on? What is the actual number of sales vs Apples expectation of sales?

 

[mobywv]

Someone please point me to a store where the sells are lackluster because I can't find em anywhere :|

 

[Mac 128]

Stopped by an Apple Store last night to buy two silver 64GB sim free iPhone SEs. I was told there are no 64GB iPhones anywhere in Los Angeles to be had, and they have no idea when to expect them. The online store says earliest availablitlity at any Apple Store in the LA area is April 29!

The salesperson said that the demand for the SE had taken them by surprise. He did offer that they had just received an assortment of 16GB models, and I stopped him with a firm "no" and he aknowledged that nobody else wanted the 16GB phones either.

i certainly didn't expect the demand to be this high after the initial week, which is why I waited. But after talking to this Apple guy, I'm pretty convinced Apple screwed up another launch. At least they are seemingly out of touch with what their customers want and will buy. Clearly there's some evidence here that the majority of customers realize and know 16GB is no longer enough. I'm not saying there's not still a role for a 16GB phone, especially in an entry level phone like the SE, but Apple woefully underestimated the demand for 64GB phones here. If they're sold out in LA and NY, this is a bit of a problem. A good problem, but a problem none the less.

Maybe I'll have better luck buying off of eBay. Just wish the out of warranty 5c and 5s weren't crippled by recent iOS updates while I wait to replace them.

I think Apple is going to learn a lot from this little experiment, and I hope we see the results of this data realized in the launch of the 7.

 

[bollman]

Wow. What's the catch? Was it subsidized or something? I would've bought it too if it's priced the same here. The Z5C is around $535 in Malaysia right now.

Weeell, yes. I signed up for another 2 years of contract (with the same carrier I've been with for 20 years). It's all a bit confusing though as there is not a fixed amount but rather a list of phones for which you get a good price when signing up. If I had chosen an iPhone SE, it would've costed me more than the Z5C, but not much more than an 6S, which means that not many will choose the SE here as the 6S would be marginally more expensive and paying the same price for an SE as a 6S doesn't make sense.

 

[JackieInCo]

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

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

Which is why when I want to use a smaller phone, I get out my 5S which still works and lasts for 2-3 days on a single charge. No reason to get the SE if you still have a 5S hanging around amongst your 6S and 6S+ which I also have.

 

[LizKat]

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 I liked the 5C last time I upgraded, and going foward I wanted an upgrade path that didn't involve a bigger screen. Lovin' the SE for everything, and iOS9 for WiFi calling, finally don't have to drive up a mountain to get a text message.

Why did I not want to wait for the iPhone 7 in a 4"? Not sure there would even be one if no one scarfed up any of the initial 4" offerings. People like me with a 5C and unhappy with the larger upgrades of the 6 and 6S offerings are the perfect target for whatever USA sales of the SE there may be. It's a great device, with super battery life; I'm so happy I got it. Now I can wait awhile before upgrading the phone again and focus on getting a newer iPad or iPad mini.

Meanwhile since the contract on my 5C ran out already, I'm now still paying the same as before on a month to month basis with the SE, no activation fee, it doesn't count as an upgrade carrier-wise, so I get to keep my 15% discount that AT&T hopes will persuade me into a Next setup sometime in future. This SE purchase and taking it to my existing plan was the perfect solution for me at this time.

 

[AlexPhone]

Umm.. not sure about other countries, but it's proving difficult to get hold of one in the UK.
Order online, it's a 2 week wait.
And no stock in stores at the moment.

I would be an SE customer, IF I could actually buy one!

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Umm.. not sure about other countries, but it's proving difficult to get hold of one in the UK.
Order online, it's a 2 week wait.
And no stock in stores at the moment.

I would be an SE customer, IF I could actually buy one!

Where exactly are you living in the UK, on a mountain in Scotland or in a cave in Devon?
I live in London and I havent seen a single carrier from Vodafone, carphonewarehouse to EE without a massive sign clearly written "iphone SE in stock now".

 

[rui no onna]

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 the out of warranty 5s with last, last, last year's technology has been having battery issues and needs replacing stat.