According to industry rumors, the current iPhone SE is going to be priced down to $199 (about RM 836). In addition, sources say that Apple will start implementing the move only after the release of the iPhone SE3, and the meaning behind it is not generally easy to understand!
According to reports, Apple was planning to launch a 5G version of the iPhone SE in March this year, but more attention will be paid to whether the existing model will be significantly reduced in price. For years, the tech industry has called for Apple to launch a low-cost iPhone in emerging markets.
Industry insiders have also suggested selling older iPhone SEs at $199 (RM 836). Third parties are already reselling current iPhone SEs for less than $200 (~RM 840), and there are many refurbished models. If Apple were to launch an official $199 (RM 836) device, it could have a best-selling model in emerging markets. However, that would provide an option for consumers who don’t care about 5G services and don’t want to spend up to $1,000 (about RM4201) for an iPhone 13.
The iPhone SE, on the other hand, has a 4.7-inch screen, an A13 processor, and a more modern internal configuration. It is said that if the iPhone SE is sold for $199 instead of the iPhone Touch, it would mean that Apple is completely abandoning the iPod product line. At the cost of materials two years ago, the iPhone SE’s hardware cost around $200 (about RM840), so a price tag of $199 (about RM836) is equivalent to selling at a loss.
After 2 years, the cost may have been significantly reduced by the change in economies of scale. Now selling iPhone SE at $199 (about RM836) does not allow Apple to earn regular profit margins, but it can be used to increase the sales potential of services and other products in huge new markets, so this can make up for this weakness.
Insiders also revealed that the iPhone SE price cut event is actually Apple’s way of generating revenue through services and forming a blow to low-priced Android phones through improved functionality.
