Not trying to argue the point, but you had said "unique" feature, which means [bold]only[/bold]. I disagreed with this. I do think that Apple did want to address keeping a smaller phone in the lineup for those who prefer the smaller size. I don't dispute this. My assertion is that Apple's main driver is to produce an iPhone situated at the bottom of the lineup that they can make a good profit on. The fact that the SE used existing components and production lines helped to keep the manufacturing costs low, therefore allowing Apple to sell the SE at the $350-400 level and still make good profits.Have Apple explained publicly the main aim being it’s profitability then?
All their marketing is emphasising the fact it’s a small phone with the power of an iPhone 6S.
![]()
Around the time it was released there was a lot of media stories and discussion asking for a smaller iPhone so I do actually think they recognised this market existed and used an older design to capitalise. A small phone was the very essence of its incarnation.
As to whether Apple would go out of their way to advertise that the SE provides large margins, that's ridiculous. No one would do that. They market design decisions as "features". They had a process to manufacture the 5-series components running like a top, so it made sense to put relatively current parts in it to make the SE. It's good business sense.
Here's what I think they'll do if they make an SE2. They'll keep the 8, and get rid of the 6s and probably the 7. They'll make the SE2 in the 6/7-body with a mix of 7 and 8 components. The SE2 and 8 would be sufficiently differentiated by the aluminum shell vs. SS/glass body.
Could they surprise me and make an SE2 that in the 5-series body with 7/8 components? Sure, but my guess is that won't happen. I don't think Apple sells enough SE phones to justify keeping the 5-series production lines going. But who knows. Maybe they'll tinker with the idea of manufacturing the SE in the USA and they need a product that sells in the 20-million range and is a well understood process. The marketing alone would justify the loss of margin.
ADDED - and to address your question as to whether Apple has publically explained their feelings about profit margin, the answer is yes. They do it every 4 months in the form of their Earnings call. They make a big deal about the company's overall profit margins. They explain the reasons why the iPhone's margins are going up or down. They talk a lot about where they want the iPhone's margins to be. It's not explicit, but they do state these things publically. Just not in bold type on their website.
Last edited: