Gregory Joswiak, the Vice President of Apple’s Product Marketing introduced the new iPhone SE during an event in Cupertino’s Apple headquarters on March 21, 2016.
It announced the release of a 9.7 inch iPad Pro, a small iPhone 6E and various software improvements for existing devices.
The iPhone SE might be dead on arrival in the top emerging smartphone market of Asia. The launch of this smaller and low-priced iPhone is an effort by Apple Inc to offer customers a cheaper access to the signature device without any compromise on the technology upgrades.
The great untapped market of Apple is India, the 3rd largest smartphone market after the United States. According to a report, Xiaomi was narrowly beaten by Apple in the top 30 cities of India with slightly under 5% of the market in the 4th quarter of 2015.
During the 1st quarter earnings call of Apple in the month of January, Tim Cook, the Chief Executive signaled an intention of pushing deeper into India and pointed out to the young demographic of the country as ripe for a consumer brand such as Apple. He stated that the total sales of iPhone increased by 76 percent in India, and the revenue went up by 38 percent.
On the call, Cook stated that half the people of India are below 25. So, the demographics are quite great for a consumer brand and people are always on a lookout for the best products.
However, Apple that already rules in the market in the premium segment might find Indians less willing to opt for iPhone SE. Given below are the reasons!
Large screens are in demand
The growth of smartphones in India is mainly driven by its low prices and large screens. Almost 50% of the smartphones have 5-inch displays. However, with a 4-inch display, accommodating iPhone SE as a popular model is difficult.
The price of iPhone SE would be around $399 in the US but in India, its price is $590. This 48% price would be a deterrent for Indian users who wish to upgrade their iPhone6.
For new users, this price is certainly high as compared to an entry-level iPhone 6 which carries a retail price of around $463.
A lot of competition when it comes to 4-inch displays.
The main competitors of Apple include Lenovo, Micromax, Samsung and Lava. These companies sell their phones with 4-inch displays under 10,000 Rupees. People prefer buying this instead of iPhone SE, which is premium priced.