Apple is set to introduce an advanced version of its popular iPhone SE by March 8, which is the tentative first event in 2022 for the company. The new 5G version of the iPhone SE could be priced at $399 and will replace the present SE.
Will Apple retain the earlier model and drop prices as it has done earlier when new models of iPhones were introduced?
If It Goes Ahead, The 2020 iPhone SE Would Be The First Sub-$200 Handset Sold By Apple
Mark Gurman of Bloomberg has suggested that the potential price tag for the iPhone SE 2020 model could be dropped to around $199. This would help Apple to capture the market in price-sensitive markets like Africa, South America, and India, where people go for the price-sensitive Android sets.
For instance, at that rate, Apple could price it at below ₹20,000 in India, the price for most mid-range handsets. Apple has not sold iPhones at $200 before. But their entry-level iPhone SE is the cheapest at $399 and Gurman proposes that component prices are just right to justify entering the sub $200 market.
Gurman said that though the 2020 SE would lose money at sub-$200, the economies of scaling up should ensure that the cost price will drop. At that price point, Apple would gain a ready entry into the huge market of Africa and India, where the brand has a strong recall.
Apple has remained focused on its flagship products and never seriously considered the lower end of the market. But it has earlier retained older brands and offered them at affordable prices. The iPhone 11 remains in the market at around $499, its most affordable handset after the iPhone SE.
Pricing the SE at around $199 will also let Apple replace the outdated iPod, at the same price. It would be a good upgrade at the same price for customers.