Apple's latest iPhone SE 5G is expected to do well in competitive markets such as Asia, with 5G network support now bringing it in line with key competitors across the mid-end segment, analysts have said.
Apple on Tuesday unveiled the new iPhone SE at 'Peek Performance' -- its first event of 2022. The third generation of Apple's "affordable" iPhone is an upgrade to iPhone SE launched in the year 2020.
Despite the bigger $429 (Rs 43,900 in India) price tag, the updated iPhone SE is expected to do well, according to a Counterpoint Research report.
The report says the demand for Apple's latest iPhone will open up in markets such as Europe, Asia, and Korea where customers stayed away due to lack of 5G support.
“The iPhone SE has been a solid mid-segment performer for Apple, with the 2020 version accounting for 13% of overall sales during its launch year,” said Jeff Fieldhack, research director of Counterpoint’s US practice.
“It’s continued to have fantastic longevity with the device appealing to both new iOS users looking to upgrade from budget Android or iPhone owners replacing iPhone 8 (or older) devices, which this new SE body is based around," he said.
Analysts believe the high price is "a slight surprise" but with the A15 Bionic chip, it has a long runway.
“The pricing is a slight surprise to the upside, but it shouldn’t be considering the chip upgrades coupled with recent events only intensify short-term supply chain risks,” says senior analyst Ivan Lam.
“I think they had room to move, especially with supply issues hitting lower-end components like 4G chipsets much harder than 5G, but this is a solid device with a long runway.”
“The A15 Bionic supports all current services and others to come for the foreseeable future, so they can run this device for years with only slight tweaks or upgrades. And the higher starting price doesn’t just mitigate short term risk, it gives them extra padding to drop prices tactically in tandem with new 5G launches and as the product ages,” said Jeff Fieldhack.
The report says Japan, US, China will be key regional markets to the success of Apple's new 5G enabled iPhone.
The report said the earlier 4G iPhone SE accounted for 12% of total iPhone sales from its launch in Q2 2020 until the end of 2021, with Japan the biggest market after the United States.
“Developed markets like Japan will be critical to the success of the new iPhone SE, where one-third of all 2020 SE models have been sold – and, of course, stalwarts like the US and China which accounted for another third of unit sales will be big drivers,” Sujeong Lim, senior analyst said.
