iPhone SE, Covid-19 and iPad 3 March: The future of Apple is no longer a bet on the iPhone

Compared to all the smartphones that Apple has revealed in the past four years, the iPhone SE has a very noticeable feature: the price of $ 400. At this price, the iPhone SE becomes Apple’s first 4.7-inch smartphone to fit into the mid-range segment, bringing the A13 chip’s super speed experience to those who can’t afford to buy an iPhone 11 or iPhone 11 Pro. Another new point in the Apple product strategy that has just been revealed in March is the iPad Pro. Previously, Apple’s March event was usually reserved for “regular” iPads while iPad Pro was “reserved” until September. Apple’s goal is always to launch more important products by the end of the year to take advantage of. maximizing purchasing power of users, thus optimizing profits. This year, the iPad Pro was pushed to less important March, while the September event was used to launch the “regular” iPad priced at $ 330. Profitability The iPhone SE was only part of the downward trend. At the same event in September, Apple brought the starting price of the iPhone 11 to $ 700, $ 50 less than the iPhone XR when it debuted. The MacBook Air line after many years of estrangement last year has also been completely refreshed, starting at just $ 1,000, $ 300 lower than the previous flagship (12-inch MacBook). After the Apple Watch S5 was launched, the Series 3 also dropped to $ 200 – the lowest genuine selling price in the Apple watch’s history. It’s clear that Apple is favoring “soft” products. more than ever. These are particularly rare steps for a brand that is as famously expensive as Apple. Please note that the profit before tax ratio of Apples Beans is usually at 35% to 40%. An iPhone 11 Pro sold will bring in $ 400 in profits. An iPhone SE costs $ 400 will not be able to make $ 400 profit, and iPhone SE buyers will definitely not buy the iPhone 11 Pro (or iPhone 12 Pro) anymore. When selling SE, Apple will certainly have to sacrifice profits. The same thing happens with regular iPads or MacBook Airs – they replace expensive seniors to become the most important Apple product. No hardware manufacturer will suddenly change the pricing policy in such a way that it will appeal to users, unless they have found a new source of revenue. case number. In the fourth quarter of 2019, Apple Music, iCloud, App Store and other Apple services brought in $ 12.72 billion. Currently, this is Apple’s 2nd highest revenue, surpassing both Mac and iPad. Only iPhone revenue is still higher than Apple service revenue, but with iPhone SE, Apple has expressed its ambition to sacrifice profits from iPhones to focus on services. With 1 year of TV + donation, iPhone SE will be the bridge to bring users into the Apple content ecosystem. With the same powerful configuration as the iPhone 11 Pro, iPhone SE is an excellent lure for the Apple Arcarde, a free play service> 50 titles monthly. At $ 400, the iPhone SE is also a great tool to popularize Apple Pay or Apple Card, making Tim Cook’s company a part of the consumer shopping experience. So is the other soft price. Low-cost iPads or MacBooks are all tools to boost content revenue. Apple Watch is a popular tool for Apple Pay. The old fox, Tim Cook, is sacrificing temporary hardware revenue to create lasting software / content revenues … forever. Vision for the futureCovid-19 is a testament to why Tim Cook needs pursue the vision of putting services on hardware. When the outbreak in Europe and the US in March, Apple has cut down the quality of Apple TV + broadcast. This undesirable step represents one thing Tim Cook has long wanted: the demand for Apple’s digital services is real.In a special year like 2020, there is no doubt that the role of the service segment will grow. increase more. When Apple Store stores are closed, when the supply chain in China is in turmoil, Apple can still charge money from digital services. That is, Apple is holding a revenue stream that can beat even the most difficult circumstances. How is Tim Cook is gradually lowering the profit from hardware to switch to software. An old fox will certainly not be afraid to sacrifice short-term revenue to create a “permanent” and stable revenue: Apple’s future is now not the iPhone, but digital services!

[ Æsir Tales ]
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