iPhone SE Might be Discontinued – What’s Next?

iPhone SE (an iPhone 5s which iPhone 6 features) was introduced in March 2016 by Apple. It aimed to be a budget iPhone that could be afford and bought by more customers. Also, some Apple lovers at that time asked for a smaller screen smartphone.

However, Apple might discontinue it because there is no next model in plan and if that is the case of a “limited edition” phone, let’s see why.

Bigger is better

Customers have changed their preferences regarding the size or their phone, and one proof of that was Apple’s significant increase in revenue after introducing the iPhone 6 and iPhone 6 Plus in 2015.

Luca Maestri, Apple CFO said regarding company’s October 2016 earnings conference call that “worldwide demand for iPhone 7 and iPhone 7 Plus has significantly outpaced supply, particularly on iPhone 7 Plus.”

Then, a year later, Tim Cook, Apple’s CEO said regarding company’s November 2017 earnings call that the iPhone 8 Plus had “gotten off to the fastest start of any Plus model.”

“That for us was a bit of a surprise, and a positive surprise,” Cook said.

Furthermore, Apple’s iPhone X (having a larger display than the iPhone 8) is proving to be Apple’s best-selling iPhone model.

“And customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter,” Cook said regarding company’s earnings conference call of May.

Not budget customers’ choice

Another reason why iPhone SE was introduced was to enable iPhone-wanting people to buy one by reducing the cost of production and automatically decrease the price of the device.

Apple also took into consideration the competition (Android offering low-cost and big-screened phones with average internal features), but iPhone SE just can’t please everybody.

Investor takeaway

iPhone SE’s discontinuation might upset some customers, but it will be for a better future of the bigger screen phones.

At least now we know why Apple would take that risk to make such a decision.

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About the Author: Francis E. Hagopian

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