Apple Inc launched the new member of IPhone family–IPhone SE in Australia on March 21th 2016. It looks like the iPhone 5S with the same squared body and all-metal back. IPhone SE only has the 4-inch display, smaller than other iPhone lineup. Meanwhile, it is equipped with Apple A9 processor as the same as iPhone 6s.But Tim Cook, the Apple Company’s chief executive officer (CEO) believes that iPhone SE was the most powerful 4-inch phone ever.
Let’s look at the attractive hardware of iPhone SE. Apart from the amazing Apple A9 chip, iPhone SE is also provided with 12megapixel camera with true tone flash and focus pixel that can capture live photos and shoot 4K video. In a word, iPhone SE will give you the similar function experience as larger iPhone 6s. There are four available colors, including silver, rose gold, gold and space grey. Now in Australia, the 16GB iPhone SE is priced at $679 and you can pay $200 more for the 64GB version.
Obviously, the hardware configuration of iPhone SE is so attractive at a low price. However, why Apple launches the smallest and cheapest iPhone SE among all iPhone lineups rather than new larger iPhone 7 now? Apple vice-president Greg Joswiak said that the market demand of smaller smartphone was still big in many countries.
So, Apple firmly goes back to extend the iPhone lineup range. According to Australian Smartphone market study released by Australian technology analyst firm Telsyte, there were only 7.9 million smartphones sold in Australia in 2015, declined by 11% than 2014 (News, 2016).
In fact, the Australian smartphone market has been saturated almost. No that Australians have no use for smartphone, but there is no need to upgrade now, unless the current phone is unsatisfied.
Furthermore, during the next year, Optus and Telstra will weed out the 2G network. In other words, some people need to upgrade their old smartphone. Are you in this group? IPhone SE may be more suitable for the emerging markets like India, China, Middle East and others. Huge population base and brand recognition are the major reasons. The affordable 4-inch iPhone SE will be promising in these markets, especially in China and India. So, based on geographic segmentation, Asia, Middle East and Africa are the more important markets of Apple iPhone SE.
In addition, according to the behavior segmentation, iPhone SE is a good choice for People who desire the first iPhone but cannot afford to pay iPhone 6. And it is also designed for people who prefer a smaller smartphone with high quality. There is another big potential target market that people with high brand loyalty are using the iPhone 5, 5s or 5c now and do not want a larger one. Apple Inc needs to make the best efforts to convince them to upgrade into the most powerful 4-inch iPhone SE. on the other hand, the market position of iPhone SE is a smaller, premium smartphone. It is an entry-level iPhone designed to replace the older 5S. IPhone SE will face the challenges from Xiaomi, LG, Huawei and Samsung.
If you are a potential consumer and have an impulse to buy iPhone SE, please think twice. Although iPhone SE is very attractive, it is technically “old wine in an older bottle”. There is few new technology innovation found in iPhone SE. iPhone SE may be described as a smaller iPhone 6s with the body of iPhone 5s.
As a whole, iPhone SE is an excellent small smartphone worth considering.
Lacobucci, D. (2014), Marketing Management, 4th Edition, South-Western, Cenage Learning, Mason, Chapter 3, Segmentation, Chapter 4, Targeting, and Chapter 5, Positioning
News. (2016), Apple iPhone SE: Why Apple needs a smaller iPhone, retrieved April 9, 2016 from http://www.news.com.au/technology/gadgets/apple-iphone-se-why-apple-needs-a-smaller-iphone/news-story/c9d32c0ea6dc1b9eaa5abb4d0c3af30b
Written by: Yuchen Pang
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