Apple has splurged on a core processor and some communication parts for the SE model, but other components, including its liquid crystal display and battery, are nearly the same as its iPhone 8. It can be said that the iPhone SE is "a family car equipped with a supercar's engine," as the company shifts its strategy from purely focusing on selling high-end models. (Nikkei Asian Review, May 11)
- Apple is doubling down on its winning strategy around more for less.
- In the case of the iPhone 12, Forbes recently reported on a rumoured starting price of $649, $50 below the non-5G entry level iPhone 11.
- In the case of the new SE, Apple is finding the balance of where to compromise (mainly the display, battery, and camera components), and where not to (A13 processor).
The company will not skimp on the latter as the processor is important to support its latest services like Apple Arcade, AR Apps, Apple TV+, and Apple Music. - The SE’s $399 starting price will attract both upgraders and Android churners, especially with a free year of Apple TV+ bundled in.
- Continued double-digit growth in Apple Services depends not only on scale, but on a device portfolio which enables complex apps to run smoothly. Apple is succeeding in both of these areas.