iPhone SE (2016) iPhone SE mostly discontinued, what alternatives are there?

[Mac 128]

Someone brought up a point that waiting till March next year would mean that lots of people buy the new models with high profit margins (especially across the holiday period) and then in March after its died down they release an update. I'm not sure how likely it is but It makes sense to me.
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Didn’t Apple just build a new plant in India last year specifically to build the SE?

Granted, they could continue to sell the SE outside the US, and other major markets as they did with the 4s and 5c long after that phone was discontinued in the US.

But let’s think about why Apple would discontinue a phone they built a factory specifically to make only a year ago:

1) they are retooling the plant for an updated SE, and discontinued it since they couldn’t continue to supply that model from the same factory as they gear up for the SE 2.
2) the parts used for the SE became unavailable, or more expensive due to low demand, or will in the near future, so Apple decided to redesign.
3) discontinuing during this launch gives Apple the ability to see how the market responds to higher margin, larger handsets to gauge how big a market exists for the SE 2 which is already designed and will soon go into production if a March launch is really going to happen.
4) a new design is necessary if Apple wants a low budget, “international” phone to last another 3-5 years, which means the US would need to necessarily be a part of that launch, and indeed subsidize the development costs at an initial higher cost, before it can become an international commodity.
5) Apple over-designed the SE to provide high level of service for the price to ensure it could carry the customer through this anticipated retooling gap when updates would no longer be offered.

And those are just the first five things that came to mind ...

 

[JPack]

Didn’t Apple just build a new plant in India last year specifically to build the SE?

Granted, they could continue to sell the SE outside the US, and other major markets as they did with the 4s and 5c long after that phone was discontinued in the US.

But let’s think about why Apple would discontinue a phone they built a factory specifically to make only a year ago:

1) they are retooling the plant for an updated SE, and discontinued it since they couldn’t continue to supply that model from the same factory as they gear up for the SE 2.
2) the parts used for the SE became unavailable, or more expensive due to low demand, or will in the near future, so Apple decided to redesign.
3) discontinuing during this launch gives Apple the ability to see how the market responds to higher margin, larger handsets to gauge how big a market exists for the SE 2 which is already designed and will soon go into production if a March launch is really going to happen.
4) a new design is necessary if Apple wants a low budget, “international” phone to last another 3-5 years, which means the US would need to necessarily be a part of that launch, and indeed subsidize the development costs at an initial higher cost, before it can become an international commodity.
5) Apple over-designed the SE to provide high level of service for the price to ensure it could carry the customer through this anticipated retooling gap when updates would no longer be offered.

And those are just the first five things that came to mind ...

Wistron built a assembly plant in India, not Apple.

Wistron builds products for everyone including Microsoft, Sony, and Xiaomi.

 

[Press22]

Geez when did this forum become filled with sheep who don't care and think everything Apple does is great...

OP I know where you're coming from. I think a SE size phone with edge to edge screens would sell like hotcakes. Especially so with updated cameras. In fact I think this would be more attractive to people than the XR (might be a reach)

Things I like about the 5/SE:
Size
Sharp bezels let you grip the phone MUCH easier.
IMO looks better
Fits in pockets

I ordered a XS last night but would gladly sell it for a new SE. Here's hoping we see a SE2.


EDIT: I decided to look up some stats on which model iphone's sold the most. The 6 is the best selling model, second place is the iPhone 5.

 

[BiggAW]

iPhone SE 2 is coming in March 2019.

There won't be an SE2. If there was one coming, the SE would have hung on until then. It is clear that Apple want to maximize profits, and believes that catering only to the high end of the market is the way to do this.

In the US, prepaid carriers will have to mostly move away from the iPhone and stick to low-end Android devices, as there's just nothing from Apple that's priced to meet their needs.

I think it's a huge missed opportunity to make a cheaper iPhone model and bring people into the iOS ecosystem, but Apple is clearly making a calculated bet here, and it doesn't include the SE. IMO, Apple should have designed a newer, slimmed down 4.5 or 4.7" device to hit the $349 price point and be discounted from there.

 

[JPack]

There won't be an SE2. If there was one coming, the SE would have hung on until then. It is clear that Apple want to maximize profits, and believes that catering only to the high end of the market is the way to do this.

In the US, prepaid carriers will have to mostly move away from the iPhone and stick to low-end Android devices, as there's just nothing from Apple that's priced to meet their needs.

I think it's a huge missed opportunity to make a cheaper iPhone model and bring people into the iOS ecosystem, but Apple is clearly making a calculated bet here, and it doesn't include the SE. IMO, Apple should have designed a newer, slimmed down 4.5 or 4.7" device to hit the $349 price point and be discounted from there.

I agree, if an SE2 was coming, Apple would have retained the SE for another 6 months.

I suspect the prepaid carriers will still carry iPhone SE, just like they still carry iPhone 6 even though it was discontinued at Apple Stores two years ago.

Apple's message this week was they're moving to big phones like everyone else and to follow the market. In an Apple Store, the SE looks completely out of place with its 4" display.

 

[BiggAW]

I suspect the prepaid carriers will still carry iPhone SE, just like they still carry iPhone 6 even though it was discontinued at Apple Stores two years ago.

Apple's message this week was they're moving to big phones like everyone else and to follow the market. In an Apple Store, the SE looks completely out of place with its 4" display.

That's a good observation. Prepaid carriers may keep them around for a while. MetroPCS just launched a huge promotion with billboards around my area that tout a free iPhone SE if you buy another iPhone of any type. That's also a good point about retail, and it also applies to Wal-Mart, Best Buy, and carrier stores where most devices are sold.

 

[s54]

The closest thing to an iPhone SE and the most logical replacement in the Apple lineup right now is the iPhone 7, as sad as it sounds.

 

[ucfgrad93]

I think the only alternative is the iPhone 7 & 8.

 

[actcyclist]

If a sufficient number of current iPhone SE/5 users hold out and don't buy the larger iPhones Apple will notice and hopefully respond by introducing a smaller phone.
When they brought the SE out, the reason given was that so many people were holding onto smaller phones.

Unless the photos on my SE are dramatically worse than the XR, I' going to wait a bit and see what Apple does in 2019.

 

[thadoggfather]

There is no alternative SE1 still works too

But shame on Apple

I hope the spring brings se2 but I don’t have much faith

Discontinuing a product without a successor casts a lot of doubt

 

[Dmal99]

I mean, don’t most of you stick with Apple because they are always moving forward and changing the dynmic from decade to decade? Who knows smaller phones won’t be back in style in 10 years, who can say?

The point is you can’t be a fan of Apple and their change and innovation and design evolution but then comnplain they didnt just stop and keep making the one phone you like forever.

 

[subjonas]

I mean, don’t most of you stick with Apple because they are always moving forward and changing the dynmic from decade to decade? Who knows smaller phones won’t be back in style in 10 years, who can say?

The point is you can’t be a fan of Apple and their change and innovation and design evolution but then comnplain they didnt just stop and keep making the one phone you like forever.

Haha I’m not a fan of Apple. I’m a fan of some of their products. Are there really people out there who put so much faith in Apple that they will disregard their own preferences to fully accept whatever Apple sells them?

 

[Mac 128]

Wistron built a assembly plant in India, not Apple.

Wistron builds products for everyone including Microsoft, Sony, and Xiaomi.

Ah. Still, the articles I read were saying that Apple was planning on using the facility exclusively for the SE.

There won't be an SE2. If there was one coming, the SE would have hung on until then. It is clear that Apple want to maximize profits, and believes that catering only to the high end of the market is the way to do this.

I don't think that's guaranteed. If Apple is planning to retool the SE and relaunch in March, they'd likely need 6 months to do it. With so many different products launching worldwide within weeks of each other, they likely don't have the option to shut down a plant while continuing to make a budget model.

Moreover, this gives them a chance to maximize profits for the 1st quarter earnings, by pushing people into a higher profit margin category. I just looked on Amazon, and there's likely more than enough supply inventory of existing SEs to sustain customers through until March, albeit not at the flagship Apple Stores. If someone wants an SE, they can probably get it.

I suspect the prepaid carriers will still carry iPhone SE, just like they still carry iPhone 6 even though it was discontinued at Apple Stores two years ago.

That's a very good point, of which I was unaware. Also, Apple sold the 4S and 5c in India and other emerging markets long after they were dropped here in the US and elsewhere. So the phone may only be discontinued as an Apple Store corporate phone offering...

 

[BiggAW]

I don't think that's guaranteed. If Apple is planning to retool the SE and relaunch in March, they'd likely need 6 months to do it. With so many different products launching worldwide within weeks of each other, they likely don't have the option to shut down a plant while continuing to make a budget model.

Moreover, this gives them a chance to maximize profits for the 1st quarter earnings, by pushing people into a higher profit margin category. I just looked on Amazon, and there's likely more than enough supply inventory of existing SEs to sustain customers through until March, albeit not at the flagship Apple Stores. If someone wants an SE, they can probably get it.

I agree with all of that, but if they were planning on launching an SE2, why did they take the SE off of the store? Even if they shut it's factory down, you'd think that they would have had enough time to make a giant stockpile of them somewhere for the few people who would buy on for $349 off of their website.

 

[thadoggfather]

I agree with all of that, but if they were planning on launching an SE2, why did they take the SE off of the store? Even if they shut it's factory down, you'd think that they would have had enough time to make a giant stockpile of them somewhere for the few people who would buy on for $349 off of their website.

Even tho u can buy used/clearance maybe they don’t even want to incentivize cannibalizing sales

Or a 349 6s. That would still destroy imo. With a headphone jack and low price for the average non tech enthusiast

 

[JPack]

Even tho u can buy used/clearance maybe they don’t even want to incentivize cannibalizing sales

Or a 349 6s. That would still destroy imo. With a headphone jack and low price for the average non tech enthusiast

I'm not sure SE would cannibalize anything. It's a $349 product. Are people cross-shopping between a $349 iPhone and a $749 XR?

 

[FFR]

I'm not sure SE would cannibalize anything. It's a $349 product. Are people cross-shopping between a $349 iPhone and a $749 XR?

Nope don’t think they are.

 

[Mac 128]

I'm not sure SE would cannibalize anything. It's a $349 product. Are people cross-shopping between a $349 iPhone and a $749 XR?

It's $349 customers wouldn't be contributing to products Apple is currently manufacturing and has to sell.

If there's a new SE coming in the Spring, better to boost their 1st quarter numbers with phones they're making, and see who is upgrading to what. Come March, there will be another surge in demand for the SE from the holdouts giving them a strong 2nd quarter.

Apple doesn't really hold inventory, so the only inventory out there would be replacement handsets, and that purchased by carriers and 3rd party retailers -- no need for Apple to stockpile it in an expensive warehouse. Meanwhile they create demand for the new model when it launches at a much higher price, thus guaranteeing a more receptive audience.

But it won't have a headphone jack.

Really makes you wonder when they're going to discontinue the iPod Touch.

 

[thadoggfather]

I'm not sure SE would cannibalize anything. It's a $349 product. Are people cross-shopping between a $349 iPhone and a $749 XR?

Possibly honestly haha

But without the option we won’t know

 

[JPack]

It's $349 customers wouldn't be contributing to products Apple is currently manufacturing and has to sell.

If there's a new SE coming in the Spring, better to boost their 1st quarter numbers with phones they're making, and see who is upgrading to what. Come March, there will be another surge in demand for the SE from the holdouts giving them a strong 2nd quarter.

Apple doesn't really hold inventory, so the only inventory out there would be replacement handsets, and that purchased by carriers and 3rd party retailers -- no need for Apple to stockpile it in an expensive warehouse. Meanwhile they create demand for the new model when it launches at a much higher price, thus guaranteeing a more receptive audience.

But it won't have a headphone jack.

Really makes you wonder when they're going to discontinue the iPod Touch.

This really isn't true for the SE. When the SE launched in March 2016, it didn't register a blip on Apple's revenue radar.




In terms of factory utilization, keep in mind Apple has at least three partners: Foxconn, Pegatron, and Wistron.

Even with the iPhone X last year, Apple sold 77 million iPhones in calendar Q4'17. This is less than their peak 78 million units from Q4'16.
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Possibly honestly haha

But without the option we won’t know

If Apple was worried about cannibalization, they wouldn't sell any old models. At all.

I think at this point, we're trying to read the tea leaves and hoping beyond hope for an SE2.

 

[eoblaed]

Is Apple forcing us to stick with the (old tech) SE or forcing us to buy a larger physical size phone.

I wouldn't word it as Apple forcing people to adopt to larger phones. If anything, it's the opposite. (Anecdotally, I love my Plus sized phones (am getting my XS Max on Friday), and of the 12 people in my immediate family, all of which are using iPhones, the smallest device is an iPhone 7).

According to https://mixpanel.com/trends/#report/iphone_models/from_date:-20,to_date:0

and fiddling with the charts you can see the overwhelming majority of iPhones in use are larger than the SE. The only 'small' phone that has any real usage is the 5S at 3.95%. The rest (5C, 4S, etc) are under 1%. There is an 'other' category, which is where I assume the SE sits, that is also less than 5%.

There's just not as much of a market for tiny phones, which is why updates to small phones will probably be few and far between.

 

[Dimlaith]

i was waiting for the SE2, didn’t happen so purchased a SE 32gb yesterday to replace my 4s. Don’t want or desire a big expensive “phone”. Apple saved me some cash I guess.

 

[subjonas]

i was waiting for the SE2, didn’t happen so purchased a SE 32gb yesterday to replace my 4s. Don’t want or desire a big expensive “phone”. Apple saved me some cash I guess.

Wow props to you for rocking the 4s this long!

 

[Dimlaith]

Fingers crossed the SE does as well as the 4s

 

[Lesser Evets]

I was waiting for the SE 2... and I should have ordered the SE before the store went down.

So I ordered a 7. It shipped free and arrived in about 18 hours from ordering. It's great!

The 7 is the only true alternative. Sadly true. It's a little big, but not too bad.