Cheap phones sell the most as most people cannot afford to spend $999 or more on a smartphone. The most popular price segment for smartphones is $250-$500 in some countries whereas in countries like India, the average selling price is $159, according to market estimates.
For Apple to cater to a larger audience as it moves its focus from just being a hardware company to also being a services company, it is essential for the company to lock its customers into its garden. To do so, Apple needs to sell cheaper phones and tablets for starters.
In 2016, Apple unveiled the iPhone SE to the world which was a $399 iPhone – a truly affordable phone which was also loved by people who prefer small phones. At the time, the flagship iPhone cost $649 but right now the flagship iPhone starts at $999. It is important that the company cater to the needs of people who buy sub $400 phones as well, if it wants to survive the services war.
Getting the pricing right is very crucial for Apple. The company does not have to worry about the expensive models as Apple enthusiasts and fanboys will buy their latest phones no matter what. However, getting the price right for the budget models by making them attractive to its potential customers is very crucial.
Apple does have a very important weapon: privacy. The company is well renowned for its efforts to keep users’ data safe on their devices by using “state of the art” technologies and techniques. Also, it is one of the reasons as to why iPhones are expensive as the company does not sell data, show ads on the phone, or harvest user data for its own uses.
The iPhone SE 2 which is also being called as the iPhone 9 could launch anytime between 31 March and 5th April, 2020. Pictures of a case made for the new upcoming iPhone SE 2 has leaked from a Best Buy store which makes the news of the phone’s release sound more plausible.