Today, Apple announced quarterly financial report 3/2016 (FY). The revenue is 42.4 billion dollars, according to information technology news sites. This figure is down 15% over the same period last year. But it still greatly exceeded the expectation of investors. Business and technology news believed that this success is thanks to iPhone SE. It is version of hybridization with appearance of iPhone 5S and 6S’s configuration. Several people had suspected this iPhone version was Apple‘s biggest flops. Because its failure to be another technology trend of Apple. But it actually turned out proved Tim Cook is an extremely adept trader once again.
With iPhone SE, Apple has struck a chord with soft user configuration, who lack of funding in developing countries, opening up huge potential sales for the company in India and the Middle East. Amid growth of iPhone began to level off in China, iPhone SE has created a turnaround in saturated market.
Price wise strategy
iPhone SE also marks the first time in the history of Apple reach to charge $400 for a smartphone completely copy to previous version.
$400 for an iPhone SE is still lower than the price used for the oldest iPhone Apple in product portfolio. Meanwhile, It is enough to attract fans of powerful configuration but have no ability to purchase $650 of iPhone 6S. In addition, Apple does not have to spend too much extra cost design and manufacturing for this copy version. So profit margins are extremely high earning.
The demand for iPhone 4, 5 was falling sharply, iPhone 5S have been sharp depreciation after iPhone 6S. Introducing iPhone SE with high configuration and support new services such as add Apple pay or pre-paid mobile packages MetroPCS that has helped Apple mining nodes medium users to earn unexpectedly big rates.
No prejudice to revenue of other iPhone versions
At the same time, decision to upgrade configuration for iPhone lines with the lowest screen while the sale of iPhone large size lines is not affected. The reason is those who have been afforded 650 USD or 750 USD to experience iPhone big-screen, will hardly use again iPhone 4 inch, regardless how matter the price is attractive. Substantially, the powerful configuration of iPhone SE will only mean more for Android users, who Apple intended induce. Thus, the release of iPhone SE only is a form of market expansion. It drags users from emerging markets and other platforms yet did not shot in their foot at all.
In the last quarter of 2015, sales of iPhone are likely to have peaked at a record 75 million units. An iPhone is accessible easily as iPhone SE obviously helped Apple’s iPhone reversing degradation. And it brings confidence back to investors.
Apple has not announced exact sales of each line this quarter. But the average selling price of all iPhone line worldwide decreased nearly 50 USD compared to the previous quarter. It is from 642 USD to 595 USD. iPhone SE’s sell is not small at all. Market demand to SE is production excess and the company is still trying to increase supply to meet.
Apple’s financial manager said: We had a successful launches iPhone SE though the company still cannot satisfy all increasing needs for cheap smartphones. He said iPhone SE has completed on the target the company set out for it: Entice many users who never consume iPhone, take part in Apple’s ecosystem.