ZCZC
BFF-44
US-IT-LIFESTYLE-APPLE
Without fanfare, Apple launches new iPhone for the budget-minded
SAN FRANCISCO, April 15, 2020 (BSS/AFP) – Apple on Wednesday
unveiled a new entry-level iPhone in a launch without fanfare, aiming
to appeal to consumers facing a suddenly bleaker economic backdrop.
The updated iPhone SE will start at $399, or less than half the
price of its flagship devices, and be available for order as of Friday
in more than 40 markets.
Apple made the announcement in a statement, forgoing the normal
splashy product launch events of the past few years.
The screen is on the small side for smartphones, measuring 4.7
inches diagonally — bigger than the first-generation iPhone SE but
smaller than the newest phones — yet boasts high-definition graphics
for rich visuals.
Apple trimmed coasts by leaving out some of high-end features such
as facial recognition, giving iPhone SE a fingerprint sensor and a
home-screen button which fans will remember from previous generations.
While the iPhone had been in the works for months, the launch comes
amid a pandemic-induced economic slump which has hammered the
smartphone market and hit consumer sentiment.
“It is incredibly fortuitous timing,” said Bob O’Donnell, analyst
with Technalysis Research.
“This is the exactly the phone a large percentage of people will
want. It’s hard to justify spending $1,200 on a smartphone in this
economic climate, yet people still depend heavily on their phones and
a lot of people want to upgrade.”
O’Donnell said the new device is also likely to appeal to consumers
seeking a small-format handset, and in countries where consumers may
have not been able to afford iPhones.
– Entry to ecosystem –
Wedbush analyst Daniel Ives said Apple had the devices ready “and
ultimately decided to release and green light this smart phone to the
market in hopes of gaining contained success out of the gates.”
Ives said in a note to investors he expects Apple to sell from 20
million to 25 million iPhone SE handsets by year’s end.
The Silicon Valley company played up the iPhone SE as a portal into
its “robust ecosystem” of digital products and services including
television and music streaming services.
“The first iPhone SE was a hit with many customers who loved its
unique combination of small size, high-end performance and affordable
price,” said Phil Schiller, Apple’s senior vice president of worldwide
marketing.
“The new second-generation iPhone SE builds on that great idea and
improves on it in every way.”
The move comes a week after South Korean colossus Samsung
introduced new smartphones that included a model designed to work on
much-hyped new-generation 5G mobile networks and priced less than
$500.
“People might have less money to spend, but at the same time they
want better technology,” said Creative Strategies analyst Carolina
Milanesi.
“Despite the irregular launch pattern of the iPhone SE, the model
still fits into a portfolio and hitting the right price with the right
features seems like a carefully balanced recipe.”
A mid-priced iPhone has potential to appeal to users more
interested features such as cameras, screens, and battery life and
less interested in “gimmicks” prized by early adopters, Milanesi
maintained.
BSS/AFP/MRU/2247hrs