Why does the 6S cost $250 more than the SE?

Discussion in 'iPhone' started by vistokid, Mar 22, 2016.

  1. vistokid macrumors 6502

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    Jun 26, 2007
    #1
    I'm trying to wrap my head around what could possibly make the 6S cost almost 65% more than the SE. Does this mean the 7 will have a lower price point? I just can't see Apple dropping the price on their flagship phone.

    Can't believe I'm saying this but is the SE TOO CHEAP??? :)
     
  2. Hal~9000 macrumors 68000

    Hal~9000

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    Sep 13, 2014
    #2
    Because margins.
     
  3. mi7chy, Mar 22, 2016
    Last edited: Mar 22, 2016

    mi7chy macrumors 68040

    mi7chy

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    Oct 24, 2014
    #3
    $399 5SE is pretty much a 6S Mini and the price difference is $300 compared to $699 6S. There's no value proposition going with $300 more 6S or $350 more 6S Plus. 6S and 6S Plus need price adjustments to $499 and $549 respectively or release a totally blinged out 7 and 7 Plus at current prices.
     
  4. Newtons Apple macrumors Pentium

    Newtons Apple

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    Jacksonville, Florida
    #4
    It is all in the name of marketing.

    No one does it better than Apple!
     
  5. sovereign macrumors 6502

    sovereign

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    #5
    Touch ID 2, $50
    3D Touch, $50
    5mp FaceTime camera, $50
    Barometer, $50
    Dual domain pixels, $25
    Advanced LTE, $25

    Total: $250
     
  6. vistokid thread starter macrumors 6502

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    Jun 26, 2007
    #6
    Maybe from your perspective on what you're willing to pay for those features, but from Apple's margin perspective it does not cost nearly that much to put those features in the 6S.

    The math does not add up.
     
  7. se1000 macrumors 6502

    se1000

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    Location:
    LA, CA
    #7
    I hate to break it to you, but it doesn't have to add up, at all. Why does a Starbucks coffee cost $5 and pretty much the same coffee from Dunkin Donuts cost $1.50?

    It costs $250 more because it does. Either buy one or the other or don't buy either. Pretty simple.
     
  8. mattopotamus macrumors G4

    mattopotamus

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    Jun 12, 2012
    #8
    Do you think the plus should carry a $100 premium? If so, there is $100 difference b.c the screen sizes. Add in 3D touch, better front facing camera, touch ID 2, barometer, etc and that is the rest.

    Honestly everyone should be doing backflips over these prices. I still am in shock for $499 I can basically get a mini 6S (64gb) and not miss any features that matter to me personally.
     
  9. vistokid thread starter macrumors 6502

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    Jun 26, 2007
    #9
    LOL... I'm just asking a question, nothing to take personal.

    But your example is also flawed. Apple is one single company. Don't use 2 completely different companies to compare price structure.
    --- Post Merged, Mar 22, 2016 ---
    Excellent point... there's significant value compared to the 6S. Apple is smart, they know how to price point their devices extremely well. This price point is a really bold move. I hope it means the price of the 7 will be more in line with the SE.
     
  10. BeeGood macrumors 65816

    BeeGood

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    #10
    Clearly there is some markup going on with the 6s. They have to recoup the costs of the design work, R&D, etc that goes into the latest phone.

    Look at it this way...The SE is basically the 5S with many of the 6S internals. Instead of discontinuing the 5S this year, they've extended the life of it by an extra year and dropped the price by $50. And they'll keep people who are loyal to the 4" form factor.
     
  11. se1000 macrumors 6502

    se1000

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    #11
    You can cut it any way you want. Why does a iPad Mini LTE cost less than a iPhone 6s+? Surely the MUCH larger screen, larger battery, etc etc cost more than having 1 speaker at the top of the device.
     
  12. vistokid thread starter macrumors 6502

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    #12
    Fine point.

    I have never understood why the iPad costs less than the iPhone... other than Apple can get away with charging more because of demand.
     
  13. mi7chy macrumors 68040

    mi7chy

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    Oct 24, 2014
    #13
    It's good to compare actual cost to Apple which is probably a few dollars per item vs perceived consumer value. I predict most will easily go with the huge savings over the insignificant differences. Touch ID 2 is too fast and Apple Pay doesn't work everywhere, 3d touch is a gimmick when long press works with live photos and is more effortless, rear camera is the only one that matters and the rest are insignificant to most.
     
  14. smorrissey, Mar 22, 2016
    Last edited: Mar 22, 2016

    smorrissey macrumors 6502a

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    Mar 12, 2015
    #14
    Because it is Apple. I bought an expensive 6s last year and now they release this cheaper and smaller phone with the same specs....what can i say? that's my punishment for not buying a galaxy again...sigh.

    Oh wait i have 3d touch!!! yei....o_O
     
  15. eyoungren, Mar 22, 2016
    Last edited: Apr 10, 2016

    eyoungren macrumors P6

    eyoungren

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    #15
    Uhhhhh…because the 6s was released in September 2015 long before the iPhone SE and is Apple's current flagship device while the iPhone SE is NOT.

    Was this really a serious question?
     
  16. BeeGood macrumors 65816

    BeeGood

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    #16
    Sometimes it actually costs more to make a given component smaller.
     
  17. mi7chy macrumors 68040

    mi7chy

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    Oct 24, 2014
    #17
    That's actually a good point. 4" is an uncommon industry size so there's a lost in savings from not producing in quantity. It may very well cost similar to 4.7" but with lower profit per device.
     
  18. vistokid thread starter macrumors 6502

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    Jun 26, 2007
    #18
    That's fair but then based on that theory the 4" iPhone should be more $ correct? It would be the smallest of them all.
     
  19. BeeGood macrumors 65816

    BeeGood

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    #19
    Not if you leave some things out of it, which is what was done in the SE.
     
  20. mattopotamus macrumors G4

    mattopotamus

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    Jun 12, 2012
    #20
    Not to say a phone is a necessity, but it kind of is. Your phone goes everywhere with you and is a tool most people feel they need. An iPad is more of a luxury item by comparison.

    Demand is definitely a factor in price.
     
  21. C DM macrumors Westmere

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    Oct 17, 2011
    #21
    It's not about that, at least it's not about it in good part. It's more about the market, supply, demand, and pricing within that.
     
  22. oneMadRssn macrumors 68040

    oneMadRssn

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    Location:
    Boston, MA
    #22
    Apple's pricing has been a bit wonky in this regard for a while, in my opinion.

    For example, why does a 128GB 9.7" iPad Pro with cellular cost $879, but a 128GB iPhone 6S costs $849, and a 128GB iPhone 6S Plus costs $949? All components but the casing, screen, and battery are virtually identical. Seems that bigger screen and bigger battery should mean higher cost?

    There is a similar discrepancy with the iPad Air 2, iPad Mini 4, iPhone 6, and iPhone 6 Plus. Where they all share the same SoC (almost) but it seems the products with more expensive components are cheaper to the consumer.
     
  23. vistokid thread starter macrumors 6502

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    #23
    Excellent point! It's clear Apple prices the iPhone higher than the rest because they simply can. Which makes the pricing for the SE all the more surprising.
     
  24. Charadis macrumors 6502a

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    Jul 3, 2010
    #24
    Well, the SE has the better design, better size, and better compromise of features. Therefore, it has the better price.
     
  25. Zackmd1 macrumors 6502a

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    Oct 3, 2010
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    Maryland US
    #25
    Manufacturing costs play a role as well..... The SE is nearly identical to the 5s. As such it is likely that the SE shares many parts in common with the 5s like power button ribbon cables, etc... Parts that have been in production for 3+ years. Every new iPhone redesign requires a assembly line revamp and every s model has to pay for more powerful tech. The SE has neither of these things to worry about so it can cost less while still maintaining large profit margins that Apple loves.
     

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