Apple’s beautifully dangerous new iPhone

Later on this year, Apple is poised to release one of its most exciting products in years in the form of the iPhone 12. This handset is expected to come with a brand new design, 5G connectivity, improved cameras as well as an Apple A14 chipset.

However, the rumour mill is rife with information claiming that Apple will be launching a brand new handset in the first half of the year which will be a follow up to the iPhone SE. The iPhone SE was an excellent device and like its predecessor, the iPhone SE2 could be one of the most desirable handsets to roll out of Cupertino in 2020.

Let’s now take a look at why the iPhone SE2 is a beautifully dangerous handset.

The iPhone SE2 which may launch as the iPhone 9 is expected to garner a lot of sales and while it may still be considered a risky bet, it may in all likelihood be the top-selling new iPhone of the year.

The iPhone SE2 could be priced between Rs 28,000 to Rs 35,000 in India and will be the lowest priced iPhone of 2020 given that the iPhone 11 starts at a price that’s north of Rs 60K. Commenting on this, Forbes states, “No doubt there will be economies of scale at play, as well as using technology from a previous generation, but the dollar profit per iPhone SE is likely to be lower than the iPhone 11, with a noticeable fall compared to the iPhone 11 Pro and 11 Pro Max… even if the percentage margin is the same.”

A few years ago, the lower revenue would have been a major concern, however, in 2020, this doesn’t appear to be the case. A few years ago, the lower sales of the iPhone 6S and 6S Plus showed that Apple’s bottom line needed a major boost. This boost means that Apple had to repackage the older generation iPhone 5S and launch it as the iPhone SE with improved specs.

However, in 2020, Apple’s strategy has changed and the company is no longer just about hardware. It is now about software and services which means generating recurring income from iCloud storage, Apple Music subscriptions, the ongoing push into ‘TV’ and video. This strategy means that the company needs a wider user base to sell these subscriptions to. So while the iPhone SE2 may not be the cheapest smartphone in the market, it will be Apple’s cheapest handset when it is launched. This shows that an increase in sales will ultimately result in an increase in the user base which would also result in an increase in subscription sales.

And this is why the iPhone SE2 will be a delight for Apple.

Forbes goes on to state, “Opening up the iPhone family to a wider user base is something that could have been at any point over the last few years. This is a decision that will not have been made without strong evidence and financial models. Which implies that inside Apple, a tipping point has been reached. The power of iPhone sales is no longer paramount. There’s a new priority in town that wants to try and find success.”