Wednesday, 3 February 2016

Why Apple shifting to a Budget and 4’ Screen iPhone


iPhone 5SE

The reports are that apple is working on a budget and 4 inch screen model of new I Phone which is called iPhone 5SE. This cheaper version of iPhone will be launched at an Apple event on 15th of march 2016 along with its line of tablets iPad and iPad Air 3. As by the time Apple is selling millions of iPhones worth billions of dollars, ever since the launch of iPhone in 2007. Question is why they bother to make a smaller and cheaper phone if the customers are happily buying overpriced phones like hot cakes.

 "Apple is selling millions of iPhones worth billions of dollars, ever since the launch of iPhone in 2007"


To get the answer we have to look back to the history of the iPhone. The original iPhone was launched back in 2007 by legendary Steve Jobs. Right from the start of its launch, iPhone took the smart phone marker with storm and its sales are increasing year by year with every new iteration, breaking records set by the previous one. From first iPhone to iPhone 5S company stick to 4 inch screen size, but due to abundance of large screens android flagships Apple pushed the screen size of iPhone to 4.7” and 5.5’ with iPhone 6 and 6Plus. 

 In 2015 Apple’s new line of iPhones has same 4.7’ and 5.5’ screen sizes. Although the Apple reaped a record profit in last quarter of the years but at the same time the sales of its phone are not up to assumptions. Analysts said that the iPhones sales will be low this year which means that for the first time in iPhone history Apple will see a decline in demand of its phone. Thanks to the low economic growth of global economy and spatially of Chine because in recent years it’s the biggest iPhone market after USA beating the iPhone sales in Europe. 

 "in recent years China is the biggest iPhone market after USA beating the iPhone sales in Europe"


The demand of the iPhones will also be low due to other factors like saturation of the global smart phone market and lake of innovation in new iPhones models and stiffing of the competition due to new players in smart phone market. Its worth mentioning that the new iPhone design is same as the phones in previous years and with little modification of underneath hardware and no striking feature to attract the customers to dump the previous phone and rush for the new one.

Now due to slowing down to intake of new iPhones in the developed world Apple wants to continue current string of sale by invading new market in developing countries like India and Nigeria.  In these countries smart phone market is rapidly expanding but due to low per capita income majority can’t afford to buy a high end device likes of iPhone or Samsung Galaxy S series. So major player in these markets are not high end devices instead budget smart phones are the devices which rule this deprived world. 


"due to slowing down to intake of new iPhones in the developed world Apple wants to continue current string of sale by invading new market in developing countries like India and Nigeria"



So the path is clear for Apple, if it wants to grab its chunks from developing countries then it has play by “bugdet rule” i.e company has to offer a smart phone whose prices, style and features  can stand tall with other budget phones of Xiomi, Huawei and Samsung. And here the phone manufactured by Apple for this purpose naming iPhone 5SE.

This 4 inch screen phone will be much lower in price than iPhone 7 and 7Plus. Apple is hoping that with the help to this it will increase its presence in developing markets too. So as iPhone name has a crazy brand following its more likely that this budget phone will take the emerging markets by storms and will boast Apple’s slumping share values.

" iPhone name has a crazy brand following its more likely that this budget phone will take the emerging markets by storms and will boast Apple’s slumping share values."

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