Who Is the New iPhone SE?

In a strangely apathetic event with little enthusiastic executives and a range of new products that had leaked, Apple introduced the iPhone SE, a smaller version of its smartphone, and a smaller version of the iPad Pro. The main questions about the new smartphone are for whom it is intended and, perhaps most importantly, how much it will cost in Brazil. No, not yet released the prices here, but I have some theories on this subject.

SE = iPhone + iPhone 5s 6s

Remember the iPhone 5s? The newly announced iPhone SE takes the carcass of that exchange and almost all the inside by coming in the iPhone 6s. Few things were left out as antenna combination that makes 6s global smartphone (you must bring attention to SE iPhone off), the absence of 3D Touch and Touch ID, although this is the first generation. This, of course, beyond the obvious differences arising from the size (smaller screen, smaller battery).

For all practical purposes, however, the iPhone SE brings what Apple has to offer hardware, including the A9 chip that team line 6s. In other words, it is a top of the line with 4-inch screen and costs only $399 (16GB) or $499 (64GB) – out there.

In many ways the SE iPhone is better than the iPhone 6, which is more expensive (starts at $549 with 16GB) and will remain on sale. The look dated (but still beautiful) and screen size (small by 2016 standards) make the new SE look worse, but this comparison is presented very difficult to disregard these details – which, face it, is circumstantial. In areas that matter most, such as performance and camera, the iPhone SE is better. Logic, who cares?

Even in relation to the iPhone 6s, current top of the line Apple, the iPhone SE does not ugly. It’s almost as if, for the consumer, the only deciding factor between the two was the screen size. And this is precisely at this point that the SE iPhone is revealed in a way as a bet for Apple.

The Big Bet Apple in Three Points

First, the timing and the very existence of it appear to be an attempt by Apple halt the downward trend in their future fiscal results, signed after the last quarter profitability peak. (From the craziness of the financial market, the fact that the most valuable company in the world may not grow – you see, is not to have prejudice is less profit – is seen by investors as something foolhardy.)

But this kind of message is not … say, compatible with any marketing sector, then the official justification to return to the smaller format a year and a half after retire him unceremoniously with the iPhone 6, it is that there is an unmet demand for small and powerful smartphones. Which brings us to the second point to consider: profit margin.

During the presentation Tim Cook said that in 2015 were sold 30 million iPhones with 4-inch screen (5c and 5s). To put into perspective, in fiscal year 2015 (which does not necessarily correspond to the calendar year), Microsoft has sold 32.9 million smartphones.

Since it seems enough, but Apple this amount is not enough to be as significant. In 2015 it was sold 232 million iPhones, or models with 4-inch screen accounted for only 12.9% of the total. For this volume and for being devices sold at lower prices and with older components (and presumably cheaper), they fail to affect the massive margin of consolidated profit of the iPhone line.

Even using components of the iPhone 5s and being released six months after the iPhone 6s, who lends another both parties, the cost of production of SE iPhone must be greater than the former 5s. And it costs less (from US $399, against $449 of 5s). There are two details that play against the historical Apple’s strategy to keep the average price per sale (not the price) high for your smartphone.

The third aspect concerns the market itself. Is there so many people so interested in small screens? The Recode compiled some global sales data and this one draws a lot of attention:

Estimates Canalys, a research firm, show that in the last quarter of last year smartphones with smaller screen 4.5 inches not reached 10% of sales.

In this regard, in particular, it is that Apple makes a big bet. If the iPhone SE sell well, we who like to smartphones that gives to hold with one hand, probably will have more options to choose from in the near future. The big question is whether “we” are, in fact, a significant share of the consumer market. Throughout the competition it is difficult to find small smartphones. The Xperia Z3 Compact, considered the last top small line with a 4.6-inch screen was not, so … small. Why that? It is because most like screens, or because the industry thinks we prefer the? Soon

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