iPhone SE (2016) Is the main draw of the se the size or the price?

[brofkand]

I bought it for the price, but I've come to really appreciate the size.

I got my SE for $159 outright from Cricket. No contract. Unbeatable value. Nothing in Android competes at that price point. Nothing is as fast, has the battery life, or the speed of the SE - to say nothing of OS updates.

 

[0002378]

I can't imagine ever consuming media on ANY phone, regardless of size, because they are all too small. Even iPads are too small to consume media, IMHO.

Like you, I have never understood why anyone would want to squint their eyes and consume media or surf the web on a 4" or 5" screen when there is a 60" TV screen, 27" desktop screen, or 15" laptop screen available.

 

[tonybarnaby]

Like you, I have never understood why anyone would want to squint their eyes and consume media or surf the web on a 4" or 5" screen when there is a 60" TV screen, 27" desktop screen, or 15" laptop screen available.

Not all media is created equal. If I’m going to watch a 5-10 minute video, I don’t need my big tv to watch it. Now if I’m going to watch something 1-2 hours long, I will wait until I’m at my tv. No use for Netflix on my phone because it’s not worth it. But a 5 minute YouTube clip? That’s perfect for a small 5.5” phone screen.

 

[EssModelsRule]

Tim Cook stated during the Q3'2016 earnings call, the iPhone SE strategy is working.

"We added millions of first-time iPhone buyers in the first quarter."

In other words, these are price-senstive customers in India and other developing countries. These are not owners of iPhone 4 or 5 waiting for an upgrade.

There is a group of small phone lovers, but those aren't the ones driving Apple's decisions. Most consumers are asking for bigger screens to do more on their smartphones. Even Android has virtually no new products with displays smaller than 5".

What does a comment from Cook about Q1 2016 sales have to do with a device released 3/31/2016? We talking Apple’s fiscal Q1 2016? That’s even earlier. Oct -Dec 2015 is when the 6s/+ took off and there were likely deals on the 6/+, holiday season, 5s owners hitting the two year mark that mattered back then, etc.

I don’t disagree that users want bigger screens today, but we’ve now seen with the X what can be done with a phone the overall size of a 6/7/8 and we want that same approach taken on an SE-sized device. Price is not a factor.

 

[JPack]

What does a comment from Cook about Q1 2016 sales have to do with a device released 3/31/2016? We talking Apple’s fiscal Q1 2016? That’s even earlier. Oct -Dec 2015 is when the 6s/+ took off and there were likely deals on the 6/+, holiday season, 5s owners hitting the two year mark that mattered back then, etc.

I don’t disagree that users want bigger screens today, but we’ve now seen with the X what can be done with a phone the overall size of a 6/7/8 and we want that same approach taken on an SE-sized device. Price is not a factor.

I'm not sure what you're asking. Cook made that comment in reference to the iPhone SE on July 26, 2016. The iPhone SE was launched March 31, 2016. It was the first quarter of sales for the iPhone SE, not a reference to Q1 sales.

https://www.apple.com/newsroom/2016/07/apple-reports-third-quarter-results/

 

[EssModelsRule]

I'm not sure what you're asking. Cook made that comment in reference to the iPhone SE on July 26, 2016. The iPhone SE was launched March 31, 2016. It was the first quarter of sales for the iPhone SE, not a reference to Q1 sales.

https://www.apple.com/newsroom/2016/07/apple-reports-third-quarter-results/

I don’t see the quote you mentioned after quickly browsing through that link, but what you implied by using it is that the SE “strategy was working” in Q1 2016 and that just isn’t possible given its release date. My bad if I’m missing the context around the quote.

 

[JPack]

I don’t see the quote you mentioned after quickly browsing through that link, but what you implied by using it is that the SE “strategy was working” in Q1 2016 and that just isn’t possible given its release date. My bad if I’m missing the context around the quote.

It's a reference to the "first quarter" of iPhone SE sales, i.e. the first 90 days after the model was launched.

The full transcript is available here: https://seekingalpha.com/article/39...-results-earnings-call-transcript?part=single

"In both cases, that strategy is working. Our initial sales data tells us that the iPhone SE is popular in both developed and emerging markets, and the percentage of iPhone SE sales going to customers who are new to iPhone is greater than we've seen in the first weeks of availability for other iPhones launched in the last several years.

Overall, we added millions of first-time smartphone buyers in the June quarter, and switchers accounted for the highest percentage of quarterly iPhone sales we've ever measured. In absolute terms, our year-to-date iPhone sales to switchers are the greatest we've seen in any nine-month period, and our active installed base of iPhones is up strong double-digits year over year."​

Some of the news outlet shorted Tim Cook's statement to say "first quarter" as it wouldn't make any sense for Tim to be talking about Q1 in a July earnings call.

 

[EssModelsRule]

It's a reference to the "first quarter" of iPhone SE sales, i.e. the first 90 days after the model was launched.

The full transcript is available here: https://seekingalpha.com/article/39...-results-earnings-call-transcript?part=single

"In both cases, that strategy is working. Our initial sales data tells us that the iPhone SE is popular in both developed and emerging markets, and the percentage of iPhone SE sales going to customers who are new to iPhone is greater than we've seen in the first weeks of availability for other iPhones launched in the last several years.

Overall, we added millions of first-time smartphone buyers in the June quarter, and switchers accounted for the highest percentage of quarterly iPhone sales we've ever measured. In absolute terms, our year-to-date iPhone sales to switchers are the greatest we've seen in any nine-month period, and our active installed base of iPhones is up strong double-digits year over year."​

Some of the news outlet shorted Tim Cook's statement to say "first quarter" as it wouldn't make any sense for Tim to be talking about Q1 in a July earnings call.

And now the full quote says it was popular in both developed and emerging markets, not just “price-sensitive customers in India and developing countries”, so either way it doesn’t necessarily support your opinion that price is the only factor. We may not represent the majority, but there’s a sizeable group of users who want a smaller X. Not saying Apple will build it, but that’s what some of us want and would be willing to pay for.

 

[JPack]

And now the full quote says it was popular in both developed and emerging markets, not just “price-sensitive customers in India and developing countries”, so either way it doesn’t necessarily support your opinion that price is the only factor. We may not represent the majority, but there’s a sizeable group of users who want a smaller X. Not saying Apple will build it, but that’s what some of us want and would be willing to pay for.

Of course it was popular in both developed and emerging markets. There are price-sensitive customers in all areas of the world.

But you don't suddenly add "millions of first-time smartphone buyers" unless it comes from developing countries. How many first-time smartphone buyers are there in the U.S., China, or Europe? Very few.

It's pretty clear emerging markets are driving the demand for the iPhone SE. Apple's partner Wistron is assembling iPhone SE in India just to satisfy that entry-level, price-sensitive demand. If it were about labor costs, Apple would be assembling iPhone 7, 8, or X there.

 

[FelixDerKater]

Highly portable.

 

[nia820]

I think there is a mix of both. Some people want a small iphone, while others want an iPhone experience but don't want to break the bank.

 

[44267547]

but how many people would love an se that had more up to date specs, even if it bumped the price up to just under 8/8+ prices?

I Don’t think you have a understanding of the iPhone SE intention in the first place, which was to make an affordable entry-level iPhone, in order to do that;, they had to keep the cost reduced by not including certain features the other more expensive iPhone models shared. Consumers wants the iPhone SE for one reason and one reason only, and that was for the four inch form factor.

If Apple increases the price of the iPhone SE, that takes away from the initial goal of what it was meant to be in the first place, which also directly affects other countries where the iPhone SE is affordable where other iPhone models are exorbitant in price.

 

[EssModelsRule]

Of course it was popular in both developed and emerging markets. There are price-sensitive customers in all areas of the world.

But you don't suddenly add "millions of first-time smartphone buyers" unless it comes from developing countries. How many first-time smartphone buyers are there in the U.S., China, or Europe? Very few.

It's pretty clear emerging markets are driving the demand for the iPhone SE. Apple's partner Wistron is assembling iPhone SE in India just to satisfy that entry-level, price-sensitive demand. If it were about labor costs, Apple would be assembling iPhone 7, 8, or X there.

You make fine points as usual, but I don’t think historical SE sales data is a good indicator for how well a full-screen and more expensive SE would sell. Case in point, I got the 6s shortly after it was released and although the physical size of it wasn’t ideal for me compared to my old 5s, I dealt with it and came around to appreciate the screen size. When they released the SE my buyer’s remorse spiked somewhat, but I stayed with the 6s because of the screen mostly. Now I’m in my third year with the same 6s, an eternity it feels like, and I’ll upgrade this year. If they release a SE2 with a full screen it will be an instant buy for me regardless of price. If they simply slap an A10 in the existing SE, I’ll go 2018 X instead. But that’s another size increase that I really don’t want. Being a smaller iPhone fan and devout iPad mini user is not easy these days...

 

[44267547]

I don’t think historical SE sales data is a good indicator for how well a full screen and more responsive SE could sell.

If Apple wanted to update the SE with a larger display or with any other features, they would have already. I don’t believe the iPhone SE was ever meant to be an annual device. I’m Not saying the iPhone SE doesn’t have a future, but it very well could have been a one time offering. I think all the iPhone SE really needs to be updated, is the resolution, processor and camera, in a similar form factor, which in all likeliness will not include the 3.5 mm Jack. Also, if the iPhone SE were to include more expensive features, then I think that would also directly compete with other iPhone models, which is not really a goal for Apple with this phone.

 

[EssModelsRule]

I Don’t think you have a understanding of the iPhone SE intention in the first place, which was to make an affordable entry-level iPhone, in order to do that;, they had to keep the cost reduced by not including certain features the other more expensive iPhone models shared. Consumers wants the iPhone SE for one reason and one reason only, and that was for the four inch form factor.

If Apple increases the price of the iPhone SE, that takes away from the initial goal of what it was meant to be in the first place, which also directly affects other countries where the iPhone SE is affordable where other iPhone models are exorbitant in price.

Right, many consumers want the form factor only, not the budget specs and price. A bigger screen and flagship specs can be crammed into that form factor for a price I suspect enough people are willing to pay.

 

[44267547]

Right, many consumers want the form factor only, not the budget specs and price.

I disagree. I don’t think those who opt for the SE really don’t care as much about having the latest features like Face ID, and OLED display, 3D Touch, etc. Again, it’s about the form factor. The Consumer _knows_ exactly what they’re purchasing with the SE, and they’re not receiving the latest technology (Other than the processor and camera upgrades.)

A bigger screen and flagship specs can be crammed into that form factor for a price I suspect enough people are willing to pay.

Then that defeats the purpose of the iPhone SE to begin with, because if you start increasing the price point with newer hardware, that takes away some of the appeal and you have to factor that iPhone SE is a global phone, and it’s intentions is to be affordable across the world where other iPhones increasingly overpriced.

 

[EssModelsRule]

I disagree. I don’t think those who opt for the SE really don’t care as much about having the latest features like Face ID, and OLED display, 3D Touch, etc. Again, it’s about the form factor. The Consumer _knows_ exactly what they’re purchasing with the SE, and they’re not receiving the latest technology (Other than the processor and camera upgrades.)



Then that defeats the purpose of the iPhone SE to begin with, because if you start increasing the price point with newer hardware, that takes away some of the appeal and you have to factor that iPhone SE is a global phone, and it’s intentions is to be affordable across the world where other iPhones increasingly overpriced.

I thought by form factor you meant physical size. I want the physical size of the SE with a full screen, just like those mockups from last week.

If the goal is to also have a budget phone that people want, why not strip the 7 of 3D Touch and a couple other things and offer that up as the new budget option? No need to keep the screen size so small just to hit a $350 price point, especially if the masses want bigger screens.

 

[actcyclist]

size for me. I'll always go for the smallest, lightest as it needs to fit in my pockets.
I'd need to carry a bag if I owned an 8+, it'd be like carrying an iPad mini.

 

[44267547]

I thought by form factor you meant physical size. I want the physical size of the SE with a full screen, just like those mockups from last week..

Those mock ups, fan art and renders usually are never reality of what an iPhone SE will ever look like, and as much as they may be appealing and exciting, The price will be greatly increase with all that technology included the iPhone SE, which again; partly takes away from one of the initial attraction with the SE to begin with.

 

[tonybarnaby]

Those mock ups, fan art and renders usually are never reality of what an iPhone SE will ever look like, and as much as they may be appealing and exciting, The price will be greatly increase with all that technology included the iPhone SE, which again; partly takes away from one of the initial attraction
with the SE to begin with.

Why not a budget priced SE and then a top tier SE? You are adamant that the SE is only here to be cheap enough for developing countries to afford it. That’s fine, but why not create an SE sized phone that isn’t multiple years behind in processor and camera? Apple offers like 8 brand new phones right now, so it’s not about keeping their offerings small.

iPhone SE for $3xx MSRP
iPhone SE top tier for $100 less than the 8

I see no problem with this. How many people on here would buy an SE that could run with an 8, but instead settled on an 8 because the SE isn’t updated enough, even if they would prefer it’s smaller size?

 

[dcpmark]

Why not a budget priced SE and then a top tier SE? You are adamant that the SE is only here to be cheap enough for developing countries to afford it. That’s fine, but why not create an SE sized phone that isn’t multiple years behind in processor and camera? Apple offers like 8 brand new phones right now, so it’s not about keeping their offerings small.

iPhone SE for $3xx MSRP
iPhone SE top tier for $100 less than the 8

I see no problem with this. How many people on here would buy an SE that could run with an 8, but instead settled on an 8 because the SE isn’t updated enough, even if they would prefer it’s smaller size?

Yeah, I’d gladly pay for a top tier SE, but like I said I think it would be niche market, and I don’t think Apple would bother investing in it.

 

[youdontsay]

 

[EssModelsRule]

Neither consumer group is asking for a 4” screen today. The people that buy the SE for price reasons would gladly settle for a 4.7” phone with specs to hit $350, and people that buy the SE for size would gladly take a smaller X. Neither one has to be considered the successor to the SE.

 

[dcpmark]

Neither consumer group is asking for a 4” screen today. The people that buy the SE for price reasons would gladly settle for a 4.7” phone with specs to hit $350, and people that buy the SE for size would gladly take a smaller X. Neither one has to be considered the successor to the SE.

So true....I could totally see them re-imagining the SE as a low-cost iP7, but I fear that Apple is not listening to the "smaller X" side of this.

 

[apolloa]

Dddrrrrrrrrroooooooolllllllllll. Let’s hope that is how it will look