For years there has been speculation that Apple will launch an iPhone at low price. A cheap iPhone around $200 price that would allow it to develop in countries like India. The iPhone SE was meant to be that affordable device, but its starting price starts at $399. Now Mark Gurman suggests how the iPhone SE 3 could indirectly trigger this idea.
Launch an iPhone SE 3, keep the $200 iPhone SE 2
In his weekly edition of the Power On newsletter, Mark Gurman puts this idea on the table: that Apple launch the iPhone SE 3 and keep the iPhone SE 2 at a lower price. It’s not an exclusive, nor does he have any internal company information about his plans, he just mentions it as an opportunity for Apple. The perfect opportunity to have a cheap iPhone for developing markets.
Africa, South America and some Asian countries are those indicated as targets by Gurman. The, Android moves freely and a cheap iPhone would be enough to get a slice of the pie. According to him, there are several arguments in its favour:
- There are already several resellers selling the iPhone SE 2 for less than $200.
- The iPhone SE 3 will bring updated components that many people don’t need or lack infrastructure that takes advantage of 5G.
- A cheap, low-margin iPhone can be offset by services and accessories. It may encourage them to buy a better iPhone in the future.
- would end sift iPod touch, which hasn’t been updated since 2019, has an A10 chip and a 4-inch screen.
Gurman emphasizes India as destination country for this device. Where the average selling price is $196 and has increased by $40 in the last year alone according to Statista. The idea is certainly tempting.
Apple’s slow strategy in India
There was a time when it was believed that India would be like China: a gigantic market for the iPhone. Reality wasn’t like that Apple only holds 5% of the market according to Statista. For CounterPoint Research, they have a 44% market share in the $400+ segment and it has grown 108% in one year.
Apple’s current strategy in this gigantic Asian country is one of slow deployment. For to be able to open their own stores it first had to assemble its products there with different partners: the iPhone 11 two years ago, part of the total iPhone 12, and there are even plans for the iPad.
all these efforts it took years of collaboration with local and national governments. What Gurman offers of a very affordable new iPhone might suit the country at this point. But we must bear in mind that it is not enough to have stores or to manufacture locally.
The growing user base will need official and third-party support, suitably trained. There’s no point in selling millions of iPhones if subsequent users can’t fix them or get support from apps, services and the like. Saying this is much easier than doing it, especially when you start from a near-zero presence in India.
Let’s remember it was in September 2020 when Apple launched its online store in India. And that physical stores will open in a few months, almost two years later. This gives us an idea of the moments that are covered in an adventure of this caliber.
