servebolt
Phone

iPhone SE, iPhone 11 and iPhone XR – The most ingenious strategic moves of the mobile market for many years

In August 2020, Apple hit a special milestone: the company’s value reached $ 2 trillion. Just 2 years ago, Apple was also the first technology giant to reach 1 trillion. As many iFan certainly remember, the one that helped Tim Cook’s company to do a miracle two years ago was the iPhone X, the first thousand-dollar smartphone in Apple’s history.

Indeed, the success of the iPhone X at that time surprised the tech world. When global smartphone sales are clearly saturated, Apple is still willing to push its top price to $ 1,000, far more expensive than the $ 650/750 level normally used for previous generations. In the same year, Apple also faced some very impressive Android home products – especially the Galaxy S8 and Note8. Yet, during the three quarters from the launch date to the death, the iPhone X has continuously maintained its position as the best-selling phone in the world.

Special move: Right after the “super successful” of the iPhone X at the price of thousand dollars, Apple turned to focus on the top segment of the “normal” table.

Obviously, the iPhone X has confirmed Apple’s absolute dominance on the high-end battlefield. Not surprisingly, a year later Apple followed the top line with the $ 1,000 iPhone XS and even more expensive XS Max.

Surprisingly, in addition to the two XS models, Apple also unveiled the iPhone XR at a much cheaper price, with many features cut off: LCD screen instead of OLED, lower RAM capacity, only 1 camera when the The opponent had 3 cameras. As the least attractive iPhone in the 2018 iPhone category, the iPhone XR ultimately remains the best-selling smartphone in the world for a year since its launch.

The person who deposed the iPhone XR was the iPhone 11. On shelves in September last year, the iPhone 11 quickly deposed the senior to occupy the number 1 position in the world until now. Carrying the same philosophy with the XR, the iPhone 11 is also inferior to the 11 Pro Max – the screen, RAM, and camera are the 3 features that are most noticeably cut. However, even that heavy cut could not stop the iPhone 11 from hitting sales of 37.7 million units in the first six months of the year, three times higher than Samsung’s second ranked Galaxy A51 competitor.

iPhone SE iPhone 11 and iPhone XR The most ingenious strategic moves of the mobile market for many years | Phone

Following the iPhone XR, iPhone 11 and iPhone SE demonstrate Tim Cook’s growing focus on the low-end segment.

But when it comes to the cuts, the iPhone SE is Apple’s most feature-poor iPhone. It’s hard to believe, in 2020, Apple still launches smartphones with 1800mAh only batteries. The screen of this iPhone has a size of 4.7 inches, resolution of 1334 x 750 pixels, which is no different from the iPhone 6 of … 6 years ago.

Yet in the iPhone category, SE 2020 is only inferior to iPhone 11 in sales in the first 6 months of the year. Right behind this iPhone is the iPhone XR with sales just enough to surpass 11 Pro Max, the most advanced Apple-branded smartphone today.

iPhone SE, iPhone 11, and iPhone XR are on the same list: they are Tim Cook’s special moves. Immediately after reaching the top of the world, the leader of Apple did not choose the $ 1,000 smartphone as the main weapon, but turned to focusing on the iPhone with increasingly “soft” price. The iPhone 11 at launch was priced at $ 700, $ 50 cheaper than the XR’s starting price for the first year. iPhone SE costs $ 400, the cheapest in Apple history.

iPhone SE iPhone 11 and iPhone XR The most ingenious strategic moves of the mobile market for many years | Phone

iPhone 11, iPhone SE and iPhone XR help Apple maintain its position in the top selling smartphone in the world.

And all 3 are the clever moves of Tim Cook. Immediately after the huge success with the iPhone X, the CEO of Apple admitted that his company must return to more realistic prices. The more market downturn, the more Apple touches down the more affordable prices, allowing Apple to balance sales to maintain profitability year by year.

Selling soft-priced iPhones, Apple has to accept a lower profit margin. But Tim Cook is also wise enough to turn this challenge into an opportunity to develop two other key businesses. The cheaper the iPhone sells, the more Apple users increase, bringing enormous growth potential to Apple Music, Apple TV +, Apple News or Apple Arcade. Since last year, the service has grown to the stature of $ 10 billion per quarter, becoming the second income source for the Apple family after the iPhone. Devices such as the AirPods and Apple Watch also enjoyed strong growth and often outperformed the Mac or iPad in terms of revenue. AirPods are still at the top of the True Wireless market, with the Apple Watch dominating not only smartwatches, but also surpassing Swiss watches.

In the second quarter, despite the heavy influence from Covid-19, Apple still easily set a sales record. Even the iPhone also grew over the same period in 2019. In the top 10 list of the world in the first half of the year, only very, very cheap smartphones can be compared to the representatives of the Apple family.

iPhone SE iPhone 11 and iPhone XR The most ingenious strategic moves of the mobile market for many years | Phone

Thanks to Tim Cook, Apple has both maintained a dominant position in the high-end segment, while also maintaining revenue despite the Covid-19.

No wonder investors are so crazy about Apple. The world leader in capitalization is being led by a CEO who knows very well to “read” the market to adapt to the times, to continue to succeed despite adversity. In the near future, the iPhone 12 is expected to launch at a price of only $ 550, lower than the iPhone 11 to $ 150. And Apple’s position in the high-end segment will be further strengthened.

[ Æsir Tales ]
Back to top button