Apple has a $ 399 iPhone SE for people on a budget
Apple launched a smaller iPhone priced at $ 399 on Wednesday, slashing the starting price for the company's smartphone line in a bid to broaden its appeal to budget-conscious customers, while the coronavirus hampers the global economy. .
The low cost :
The low-cost model could also attract more consumers to Apple's services, a factor in revenue growth. Apple shares fell 1.1%, below the 2.4% drop in the S&P 500 index. |
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Apple will begin receiving orders for the phone on its website on Friday, with device delivery expected to begin on April 24.
4.7-inch screen :
The iPhone SE will start at $ 50 less than what was previously the cheapest iPhone available, the iPhone 8, which will be retired. The SE features a 4.7-inch screen and the same processor chip as Apple's most advanced phone, the 11 Pro. The SE lacks Apple's facial recognition system to unlock the device, relying instead on a sensor. fingerprint similar to previous models. While the new iPhone adds features like wireless charging and a high-end camera, it lacks connectivity for 5G, the next generation of mobile data networks.The coronavirus novel :
The announcement occurs when EE. USA And much of the world is recovering from the coronavirus novel, although US political leaders. USA They have started talking about ending house orders and restarting the economy, hoping that record deaths and the drop in hospitalizations represents a spike.
Previous iPhones :
Apple's cheapest phone :
Apple's cheapest phone reflects the economic downturn and job losses led by the coronavirus.
Ben Bajarin, lead analyst for consumer market intelligence at Creative Strategies, said Apple likely understood that many customers were buying older models like the iPhone 8 instead of the new iPhone 11 Pro for $ 999, "and much of that. It's probably the price - Budget-minded iPhone buyers may have been disabled by the iPhone 8's chips and camera.
Apple "addresses this problem directly with a device and a price that can still appeal to people with the latest technology," he said. "Having a device that you are sure will last a long time is exactly what (consumers) want."
The new SE in aluminum :
The new SE in aluminum and glass, available in black, white and red, looks a lot like an iPhone 8.
The cheapest phone enters a ruthless market for valuable phones, especially in China, where Apple gets about 17% of sales. In China, rivals like Xiaomi Corp last month announced models with 5G functionality starting at around $ 425.
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Bajarin said that buyers interested in 5G could gravitate towards flagship phones, while buyers on a budget "are not people who would scream about 5G."
With faltering hardware sales, Apple has invested in subscription services like Apple TV + TV streaming service, Apple Music, and iCloud. The new SE will come with a free year of TV streaming service, similar to Apple's flagship devices launched last fall.
"Given its price, (the iPhone SE) is unlikely to have such a big impact on Apple's finances, but it could help expand the installed base, which will be useful in the long run for Apple's service revenue." said James Cordwell, an analyst at Atlantic Equities.
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The coronavirus created a volatile start to the year. Sales in China, the first nation affected by the virus, plummeted and then recovered when the country began to reopen. Sales of 500,000 phones in February increased to 2.5 million phones
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