Apple’s iPhone SE 5G budget expected to outperform in Asia
Apple Inc. CEO Tim Cook speaks during the virtual Peek Performance event in New York, U.S. on Tuesday, March 8, 2022.
Gaby Jones | Bloomberg | Getty Images
Apple launched a slew of new products on Tuesday and it was the cheapest, the iPhone SE, that got analysts the most excited.
The 5G-enabled device, which starts from $429, was announced by CEO Tim Cook at Apple’s “Peek Performance” event alongside a new iPad Air, Mac Studio computer and of the Studio Display monitor.
The new iPhone SE comes with Apple’s A15 chip, which is also found in the $799 iPhone 13, and a 4.7-inch LCD display.
Analysts expect the budget iPhone to sell particularly well, especially in developing countries where some of Apple’s other iPhones are deemed too expensive.
In a note to investors Wednesday, Cowen analysts wrote that the iPhone SE’s performance characteristics “position it well against Android devices in cost-sensitive markets.”
They added that the third-generation SE could help Apple gain additional share among price-conscious consumers, especially in Asia.
“We believe the new SE can be effective in markets such as China and India where the dominant competition includes Oppo, Vivo and Xiaomi,” Cowen analysts said, adding that they expected Apple sells 28 million SEs in 2022.
Analysts at investment firm Wedbush said they expect Apple to sell 30 million SE units.
“Overall, with the A15 chip, this smartphone will be by far the fastest and most powerful phone at these price points,” Wedbush analyst Dan Ives said in a note on Tuesday.
Jeff Fieldhack, an analyst at Counterpoint Research, said in a note that he expects the device to perform well as 5G network support brings it in line with major competitors in the midrange segment.
He said it will continue to sell well in Japan, the United States and China, while 5G compatibility will open up new markets across Europe and Southeast Asia, where many consumers ” stay away” due to a lack of 5G network support.
“The iPhone SE has been a strong mid-segment performer for Apple, with the 2020 version accounting for 13% of overall sales in its 2020 launch year,” Fieldhack said. “It continues to have fantastic longevity with the device appealing to both new iOS users looking to upgrade budget Android devices or iPhone owners replacing iPhone 8 (or older) devices. , on which this new SE case is based.”
Apple’s stock rose just over 2% to $161 per share pre-market on Wednesday.