How Much Of An Impact Will The iPhone SE Have On Apple’s Financials?

+2.57%
Upside
174
Market
178
Trefis
AAPL: Apple logo
AAPL
Apple

Apple (NASDAQ:AAPL) unveiled a new 4-inch smartphone, the iPhone SE, on Monday. The device’s $400 starting price – which is the lowest ever launch price for an Apple handset – indicates that it is targeted largely at emerging markets where smartphone penetration is still relatively low and market growth is expected to be significant. Although the device is visually similar to the iPhone 5 and 5S, which were launched in 2012 and 2013 respectively, its specifications have been upgraded to give it performance similar to the current flagship iPhone 6S.  However, despite the device’s sensible pricing and strong specs, we remain skeptical about the impact it could have on Apple for the following reasons:Iphone_SE_1Iphone_SE_2Iphone_SE_3

Related:

Why The  iPhone SE Could Be One Of Apple’s Least Profitable Handsets

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An Overview Of The Indian & Chinese Smartphone Market 

Why We Expect Apple’s iPhone Business To Shrink This Year

References:

1. How Big is Too Big? Average Screen Size of Smartphones to Pass 5 inches in 2015, According to Analysts, GSM Dome

2. Apple’s new iPhone faces challenge measuring up in China, India, Reuters

3. Average selling price of a smartphone, China and India, Quartz

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Apple

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