Certainly, if you had to pick one of Apple’s faintest products in 2020, it would be the iPhone SE. Apple has never launched such an outdated phone: no new features, the design is 3 years old. Even the name is reused from its predecessor launched 4 years ago.
But every step of Tim Cook is calculated. And iPhone SE is no exception: this is the first arrow to hit 2 of Apple’s swallows in the fight against Android.
“I think a large number of users will switch to iPhone SE,” Tim Cook did not hesitate to “tease” Android during an April event.
So, which of the Cook Cook’s iPhone SE do you want? At a price that falls within the mid-range segment, the iPhone SE is clearly launched to target Android rivals. When announcing the financial results for Q1, CEO Tim Cook did not hesitate to claim “iPhone SE is faster than the fastest Android”, a rare step for a company that rarely taunts rivals like Apple.
It seems that this whirlwind has brought about the desired effect. Right in the first month of launch, iPhone SE has sold nearly 1 million units in China in the context of the explosion of Covid-19 and the growing US-China conflict. Data released by the Taiwan Economic Times reported that iPhone shipments in the second quarter reached 12 million units, an impressive figure when Apple’s key markets were affected by Covid-19 in the quarter. past.
With this achievement, the $ 400 iPhone has become a weapon for Apple to directly attack the mid-range market share of Android. According to recent Counterpoint Research statistics, Android users account for more than a quarter of iPhone SE buyers. IPhone SE’s Android user engagement rate is higher than all other iPhone models, shows that Tim Cook has taken the right step when using prices to “attract” users from competing platforms.
On the one hand, iPhone SE helps attract Android users to the Apple ecosystem …
On the other hand, iPhone SE is also a tool to keep iFan from switching to Android.
Equally important, iPhone SE is also the shield that helps iPhone stand against the onslaught of Android. Still according to the above-mentioned statistics of Counterpoint, 30% of iPhone SE buyers came from users of iPhone 6 and earlier generations. As such, it can be said that the mid-range iPhone has become a logical upgrade option for the “lazy” Apple iFans, preventing them from leaving the Apple-branded ecosystem to Android.
For Apple, the strong protection of strongholds is extremely important. With each passing quarter, the revenue of the service segment (Apple TV +, Music, News +, Arcade …) is increasing. Currently, this segment of revenue alone has given Apple a larger sum than Xiaomi’s TOTAL REVENUE in the same period. This trend shows iFan’s remarkable spending ability. When using an affordable iPhone to retain iFan, Apple not only protected the immediate revenue but also maintained the future cash flow into the service segment.
The success of the iPhone SE will certainly contribute to changing the future of iPhone strategy. According to the rumors, Apple will remove headphones and chargers from the “regular” iPhone 11 but at the same time will lower the price of this iPhone line by $ 50 to increase the attraction. The long-rumored (and leaked) iPhone SE Plus is likely to launch next year. After years of dominating the high-end segment, Apple is moving into mid-range territory owned by Android companies – the success of the iPhone SE is why Android homes need to worry about that ambition of Apple.