Apple iPhone SE to drive upgrade trend
Apple brought the long-awaited cheap version of the iPhone SE on April 15. Apple fans can get a new iPhone with the most potent processor for less than HK$3,400. With such a bargain price, Apple should boost its iPhone sales in the epidemic.
While the new iPhone SE starts at US$399 in the United States, the same as the previous generation launched in 2016. But in Hong Kong, the 64GB version starts at HK$3,399, which represents a 20% reduction from the last iPhone SE four years ago. The 128GB and 256GB versions are HK$3,899 and HK$4,699, respectively, which is more attractive than the current entry-level iPhone 11, which starts at $ 5,888.
Apple has always dominated the high-end market in the smartphone market, which has enabled the company to earn most of the profits in the smartphone industry. Since the iPhone X, Apple has further increased the price of the flagship iPhone. The latest iPhone 11 Pro Max starts at HK$9,499. Compared with the iPhone SE, the difference is HK$6100. The price of an iPhone 11 Pro Max 128GB can purchase three new iPhone SE.
Don’t forget that Apple’s A13 Bionic processor drives both iPhone models, and there is no difference in performance. Apple CEO Tim Cook ensures that every new iPhone has the same functionality. Users have to consider storage capacity, screen size, and camera features.
The iPhone SE bears a vital role in attracting a large number of old iPhone users to upgrade, in a bid to boost Apple’s service revenue. According to market data, the most popular iPhone model is iPhone 8, which accounts for 10% of the overall iPhone, followed by iPhone 7, which accounts for 9.5%, iPhone 8 Plus, iPhone 6S, and iPhone 6S Plus accounted for 8.2%, 8.8%, and 5.7% respectively. These old machines already account for about 42% of the current iPhones in circulation. Based on the number of iPhone active devices announced by Apple last year of 900 million units, if 42% of iPhone users upgrade, it will be equivalent to 378 million units of iPhone sold.
Many old iPhone users refuse to upgrade to the full-screen models due to the lack of trust in the Face ID function. Some users think that Face ID is less secure than Touch ID, and as a result, they have been using the old iPhone. This time iPhone SE retains the Touch ID feature, which should convince these users to upgrade.
To persuade old users to upgrade, Apple also set up a “reason to upgrade” page to list out all advantages of having the new iPhone SE, including faster internet transmission speed, better processor, and the one-year Apple TV+ subscription.
Apple has offered a big bargain for the iPhone SE. Will Apple fans upgrade to the new model for a better experience?