New 4-Inch iPhone is Apparently Much Cheaper

There’s been a deluge of rumours regarding Apple’s upcoming 4-inch handset, and its purpose in the current market place. Theoretically, the “iPhone SE” is designed to be a replacement for the iPhone 5s launched in 2013. It’s not a major change, but a basic revamp to offer more options to consumers who prefer a smaller model. Sources indicate that the new device will sport an almost identical aesthetic design to the iPhone 5s with slightly curved edges. However, the internals have been enhanced and should include an A9 processor, Apple Pay and Live Photos functionality.

According to KGI Securities, the iPhone SE incorporates an impressive 12-megapixel camera, and targets the $400-$500 price point. This is a surprisingly affordable price and suggests Apple is trying to forge a position in the mid-range sector. This would greatly broaden the device’s appeal and allow consumers with a smaller budget to own a brand new iPhone. Apple also intends to drop the iPhone 5s price by a whopping 50 percent to help shift units. KGI estimates 131 percent growth in 4-inch iPhone shipments to around 37 million units in 2016. Although, they predict most of these sales stem from the iPhone 5S after large discounts. Apple is expected to launch the iPhone SE at an event on March 16th as well as a new 9.7-inch iPad Pro.

Apple devices always have a price premium and their previous attempt to offer a budget-orientated model with the iPhone 5c was flawed. This is because the 5c’s price wasn’t significantly cheaper and evoked a poor feel. To be successful, Apple needed to create a large pricing gap between the two handsets. On the other hand, the iPhone SE looks very interesting and suggests a change in attitude from Apple. Despite this, there’s a huge amount of competition from Samsung, HTC, LG and other Chinese manufacturers. Although, Apple has this knack of enticing large numbers of people to purchase their products.