With the new budget iPhone due for release on 24th April 2020, we must ask what impact will this have on the premium and mid-range priced phone market, if any?
iPhone SE vs Premium iPhone
An difficult choice faces the customer looking for an iPhone in future. Previously, the used iPhone market was thriving and the models generally kept a decent resale value. Now, with the release of the SE 2020, will this affect the second hand market?
We believe it definitely will. Say you have $4-500 to spend and are considering buying an iPhone. Previously you had to choose between a used off-contract model or to buy new going on contract for 24 months and paying possibly even more. Now, you have the option of a brand new 400 dollar iPhone and freedom to choose whatever carrier you wish. That’s quite a deal! This will mop up sales from the resale market for sure, probably a bugbear for Apple as they can only sell an iPhone once!
But will it affect the new, premium iPhone sales? Quite possibly, yes. Apple seem to be getting keener on acquiring new iPhone customers as well as keeping existing ones; sales of services is growing exponentially and Apple needs to widen its market share. Apple TV has even more competition now with Disney+ on the market joining Hulu, Netflix & Prime and needs those numbers to keep competitive.
Apple really stands to win from the release of the iPhone SE 2020 and with that comes the loser in this battle….
iPhone SE vs Android
With the release of the new SE, we can only see Android losing some customers to Apple here.
Android traditionally was the more affordable option for buyers, indeed it still is. Decent budget handsets from $200+ are available and will be quite sufficient for many.
Only problem is, these phones are generally hit and miss when it comes to hardware and software quality plus you can forget about security updates after a year or two. Even premium phones in the Android range struggle to get regular security updates, the most basic requirement.
Apple will support the iPhone SE 2020 for minimum 4 years, possibly up to 6 or 7. That means software version and security will always get the latest update, and quickly too. As for apps, they are covered too. Developers fall over themselves to develop for the App Store and Apple make sure they keep their apps up to date and secure. The ease of having only one phone to troubleshoot also makes the AppStore very attractive to devs.
Now, imagine you are in a position where you have 2-400 dollars to spend on your next mobile phone. You now have the option of a brand new iPhone with blazing fast OS using the latest chipset, one of the best cameras in a mobile phone and the best quality apps around – or a hit & miss Android. On or off contract, this is a great deal.
Samsung, Xiaomi, Huawei, Motorola and more have some great offerings at this price point too, no doubt about that. For a longer term purchase of 2+ years however, the SE 2020 represents significantly more value, not to mention future resale value.
Result: Flagship Killer?
We can say that in many instances, yes, the iPhone SE 2020 will affect the sales of flagships AND mid range phones on both sides of the battle. It will definitely cannibalize some premium iPhone sales, however possibly mostly from the used phone market. Keeping customers within the Apple ecosystem and gaining new ones will be far more valuable long term however.
The new SE will likely sway many an usure consumer towards the Apple camp and away from Android going forward. Excellently priced, the new ‘budget’ iPhone will steal a lot of customers from Googles world. It is simply too good of a value proposition to decline for many!