March 21st this month Apple Corp will be held in the spring of 2016, which is the first Apple Corp in 2016 conference. In this conference, the Apple Corp may publish a new iPhone products - SE iPhone. The new iPhone will be equipped with a 4 inch screen, but its hardware configuration, specifications and design is the same as the iPhone 6 series.
Although the new machine released soon, but there are still many people wonder why Apple Corp in the two consecutive years after the launch of 4.7 inches and 5.5 inches large screen iPhone, but also introduced a 4 inch iPhone models? So this 4 inches phone in Apple's iPhone product portfolio is a kind of positioning it?
Currently on the 4 inch SE iPhone message focused on its body design, parts and specifications, on its existence and its rationality and its positioning in the apple product line, but few people discuss. So we think now we should think about why Apple wants to launch such a product.
In the end of this month to launch new products, se of the iPhone, just one of the highlights. There are also new a 9.7-inch iPad, it will be renamed the iPad pro. In addition to the new Apple watch strap Watch may also appear in this conference.
Lessons from 5C iPhone
Apple Corp released the 5C iPhone in September 2013, when many of the speculation about 5C iPhone and the current speculation about SE iPhone are the same. Some people think that iPhone 5C "C" that is "cheap", was considered to be the "color", and that is "China", of course, apple is not to the conjecture to be ignored, nor that the "C" in the end is what meaning. On iPhone 5C different people have different evaluation, most people should feel that it is a major failing of apple, but I think that is not the case. At least it plays two roles: first of all, it is a very useful experimental tool, second it in a certain extent stimulated the iPhone in the spring and summer sales, general sales of the iPhone 3 rose and rose is not how the ideal.
It is clear that consumers interested in 5C iPhone are not the only ones with the latest and best products on the market. So 5C iPhone is very suitable for operators or other businesses, in the 3-8 month period it is used to launch a variety of promotions or other marketing activities. Usually case, iPhone sales in the second quarter and the third quarter is only 1 / 3 of the fourth quarter, and and in the first quarter is only 25%. Therefore, the use of iPhone 5C to stimulate the two quarter sales also can let each quarter sales more average.
5C iPhone was released in the fall and 5S iPhone together in the fall, but this year, SE iPhone apparently out of the previous year's iPhone update fixed cycle. Perhaps the reason is because the iPhone 5C annual good sales in the second and third quarters, gradual change in the sales of the flagship device, and it can boost sales, so apple before choosing to release iPhone se at this time. In addition, SE iPhone is not the same as the flagship iPhone release, but also in order to make it more fresh sense, to avoid the limelight are the flagship device to take away.
4 inches iPhone regression
Apple released the iPhone 6 at the time, the industry think Apple iPhone screen is closed a door (has been very competitive 4-inch handset market), but at the same time, they also opened the window (in the large screen smartphone market competition). I think Apple would also like to make their own product portfolio to maintain simple, they may also think that without any strong competitors in 4 inch market, so they do not worry about losing 4 inches phone market customers.
But they did not think of is that these users are too stubborn, has been using 4 inches of iPhone, so last year, iPhone sales have been a certain impact. This time Apple decided to launch 4 inches iPhone, give these consumers a reason to upgrade equipment. Of course in these 4-inch iPhone users, want a large screen devices already updated, so apple did choose update iPhone se at this time, the same is also out of stimulation in the second quarter and the third quarter sales into.
Price and positioning
If Apple released the reason for this new iPhone is indeed as mentioned above, then Apple should be how to give this product pricing? In Apple's iPhone product portfolio, it should be in a kind of location? Here I think a lot of speculation about SE iPhone is wrong. I have said that Apple's SE iPhone is not only to stimulate the off-season sales of iPhone, but also to provide a relatively low price for emerging markets iPhone new machines. So we need to be on this new iPhone in the existing iPhone product mix in which the location of the problem to consider. From a price point of view, this product is suitable for which location:
As above, we can see the Apple Corp as well as a number of gaps, especially the lower left corner of the position, where Apple has no new 4 inches iPhone. Also said that the price of SE iPhone may be $550, with another two iPhone form the price chain. Through the $100 price difference to highlight the size and size of SE iPhone and large screen iPhone as well as the size of the.
But there are some parts of the strategy that seem unreasonable. First, this new device is not copied 6S iPhone series of product specifications, this price difference can be reflected. Second, this device is not in the conventional iPhone update cycle, in September, the price may not be reduced. So, Apple would rather sell less, less than in September when it and 6S iPhone to maintain the same price. Is the reason for these reasons, I wonder if Apple will SE iPhone price is set at $450, and immediately after the new machine announced 5S iPhone discontinued, rather than wait until September of this year and then cut 5S iPhone. SE iPhone has the potential to maintain the original price, until next year in March released the second generation of SE iPhone, then we can also set, apple believes SE iPhone this experiment is finally successful.
What about emerging markets?
In fact, with the launch of this new equipment, the Apple Corp will not consider further price bottom line. From a price point of view, SE iPhone is more likely to be replaced by a iPhone product portfolio with a specific price of the device. So for emerging markets, as well as the market for apple to further reduce the price of the request, apple how to respond to it? For these markets, Apple may continue their current strategy, that is selling the old phone, but also brought new problems: refurbished equipment.
After the old phone that Apple's strategy is to reduce the price to stimulate consumers to buy the, then this will lead to one of the biggest problems, is from the consumer to buy the phone a few years won't update equipment. That is a mobile phone has been listed on the market in the market is still in the market 5-6. If there are a large number of users in the use of the mobile phone, then Apple would have to bear certain risks, because as they in emerging markets gradually in-depth advance this strategy, the number of the user more, extent will affect the IOS and the iPhone forward development. So Apple Corp must start to shorten the life cycle of this device, which is part of Apple's SE iPhone strategy.
And another part of this strategy is to allow more old mobile phones back to the sales channel. Apple has launched the iPhone Trade-in project and iPhone upgrade program. They have many channels can be recovered those but relatively new iPhone, after the equipment renovation, apple can continue to sell these devices in emerging markets. Apple has been selling refurbished iPod, iPad and Mac in its online store, but iPhone has only recently joined the group. In iPhone upgrade program plan. A year later can apple from the phone get revenue of about $400, and if it is a monthly payment of Apple's revenue more, such even resell equipment at big discounts, apple can withstand.
You will see a year after the renovation of the machine, it is the price of several hundred dollars lower than the new equipment, the price of less than $450. A listing of one year old equipment price of $350 is entirely possible, and the price of two years may fall to $250. So iPhone had it had never had the price, and the price of such a market in India is very reasonable, it is easy to be accepted by consumers.
So after this month's conference, we might see Apple's pricing strategy may be the way it is:
As we will see later the Yellow grid will disappear, this section of going on the market has two years of equipment will be replaced by other equipment, in terms of price is refurbished machines replace, another is new iPhone 4 inches replace it. Of course, now all this is not unknown, so finally let us look at the end of this conference, Apple will be how we announced the answer to the puzzle.