Apple’s release of the new iPhone SE 2 is a defensive move, analysts have said.
The folks at IDC believe the phone’s lower price point is intended to prevent iOS users from jumping ship and picking up a mid-range Android phone instead − and there are some excellent ones to choose from.
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With flagships commanding ever higher prices and especially during turbulent times such as these, it’s easy to see more phone-buyers opting for a cheap or mid-range phone, rather than an expensive top of the range handset. With that in mind, the iPhone SE 2 could be a well-timed release.
“IDC believes that the new iPhone SE has a clear target audience and is mainly pitched against Android models in the same price range to keep existing users in the iOS fold,” IDC has said.
IDC credits the longer replacement cycle of iPhones, compared to Android phones, with Apple’s ability to retain customers. In other words, when iPhone users come to change their phones, they’re more likely to stick with the familiar iOS system unless they have a good reason not to.
“From the perspective of historical shipments, iPhone 6 and 7, with ultra-long replacement cycles, have contributed a large share of iPhone shipments over the past five years and accumulated a large user base,” said IDC.
“For those users, the latest iPhone SE is more similar to the previous generation and more familiar to them, in addition to boasting upgraded chip and system performance that encourages replacement.
“Moreover, budget-friendly prices and trade-in programs offered on e-commerce platforms add to the appeal of the new iPhone SE as a transitional model before users make new purchases subsequently. On the other hand, the likelihood is low for existing users of Android phones in the same price range to switch to the iPhone SE for their next phone because they have been accustomed to typical Android features such as large screen and multi-camera.”
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Only time will tell if Apple’s defensive pricing plan works.
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