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iPhone SE 3 5G Predicted to Attract Buyers in Asia

TEMPO.CO, Jakarta – Analysts predict Apple’s low-cost 5G model, iPhone SE 3 or the iPhone SE 2022, will enhance Apple’s appeal in Asia where it is in a fierce battle with several rivals, from Samsung to Vivo.

After focusing on high-end phones during the supply chain crisis caused by the pandemic, Apple this week launched 5G connectivity to the iPhone SE – for US$429 (Rp 6.1 million) – which is likely to attract more low-end buyers in emerging markets.

“The new 3rd generation iPhone SE could be effective in gaining additional share among price-sensitive consumers, especially in Asia,” said brokerage Cowen and Company, citing China and India in particular.

Counterpoint Research said the iPhone SE 4G previously accounted for 12 percent of total iPhone sales from its launch in Q2 2020 until the end of 2021, with Japan being the largest market after the United States.

“This time we expect demand to be more open in other markets such as Europe, Southeast Asia and Korea – regions where many consumers are staying away due to a lack of support. 5G (for older SEs),” said Counterpoint Research analyst Sujeong Lim.

The world’s richest company with a market capitalization of around $2.6 trillion, Apple, achieved its highest market share in China late last year, surpassing Huawei to become the best seller, according to Counterpoint earlier.

Cowen and Company analyst Krish Sankar said the $30 price increase of the new small-screen 5G phone from the 4G version would cover most of the additional costs of the enhanced technology, although margins would be lower compared to the $699 iPhone 13 mini.

He estimates the iPhone SE will generate a gross margin of between 42-54 percent, or roughly half of the gross profit for each device compared to the iPhone 13 mini.

“We believe that the updated affordable iPhone SE lineup will drive consumer interest in the iPhone versus investors’ fears of a sharp decline,” said Citi analyst Jim Suva.

REUTERS

Read:
iPhone SE 2022 officially launched, here are the prices and specifications

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