More growth through small price?

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More growth through small price?

The new iPhone is at least unusual for Apple-ratios significantly less expensive than previous models. But what the group expects the price offensive?

The sales curve of the Apple success product iPhone knew since the Premiere in 2007, only one direction: steeply upward. But a few weeks ago, Apple CEO Tim Cook had to warn the investors for the first time to the fact that in the outlet quarter of the year, probably less units are sold than in the prior-year quarter. With a new entry-level iPhone in
a smaller 4-inch size.Cook now this Trend is contrary to lift and lower margins

For competitors like Samsung, Huawei or Lenovo the Motorola brand, this change of course means a Declaration of war. 2014, Apple had taken the first tentative calls, with the iPhone 5c in colourful plastic casings
to open up a new market segment. The initiative had only limited success, because the engineers in Cupertino are not Packed, 2014, in principle, in comparison to the former top model, outdated technology in the 5c, the camera.

The fight to the competition

The current entry-level model iPhone SE, everything is a number smaller than the current models of the 6 series. And it is also the pressure sensitive screen (“3D Touch”), in which you can leave with a greater pressure on the Display additional content, such as a right mouse click is missing. But otherwise, all the other technical Features correspond to the quasi-the current flagship iPhone 6S. To do this, the faster processor, fast LTE, fast Wi-Fi, the fingerprint Sensor “Touch ID”, the 12-Megapixel camera and NFC Chip that is required for mobile payment systems like Apple Pay.

Presentation of the iPhone 5SE, California

In the US, Apple pushes the price for the smallest variant of the iPhone SE for the first time below the psychologically important threshold of $ 400, also if this is exceeded, in the local taxes usually. Buyers in Europe get the Euro’s weakness is felt, and of at least 489 euros on the table (including VAT).

Emerging markets in focus

At this price point, but many mobile phone providers can preparing contract packages, the iPhone SE for a symbolic Euro changes hands, even if the customers bother welshing on the true purchase price for the new Smartphone on a Two-year contract indirectly.

After the introduction of the iPhone models 6 and 6 Plus in September 2014, you could get the impression that I adopted Apple from the smaller screen sizes of 4.7 inches completely. The sales statistics refuted however this Hypothesis: “We have sold in the past year alone, 30 million devices with 4-inch screen,” said product Manager Greg Joswiak. It is a rare case that Apple reports the sales of a single iPhone product line.

With the new iPhone SE, Apple may now try to move the owner of an older Compact smartphone with a new acquisition. Since the new unit price is also cheaper, Apple will make a new attempt to score points in the emerging countries, in which, so far, especially Android Smartphones dominate almost unrivalled in the market. This fits into the concept that Apple wants to open up in countries such as India, new shops, the sales of iPhones to boost.

Smaller Margins

A similar approach Apple followed with the new compact iPad Pro. Many users a Tablet computer, the large 12.9-inch Display in the fall featured Pro model was too large and the device, despite the impressive technical equipment is simply too expensive. The new small iPad Pro also has the most technical Features of its big brother, but can be offered at a lower price.

More money through services?

At the same time, the iPad Air 2 remains in the program, with the Apple be able to compete against cheaper Android and Windows Tablets. Whether this is enough to end the downturn of the past few quarters, the iPad, Apple will need to prove but still. Apple CEO Cook gets to earn from each sold iPhone and iPad, on average, less than the years before. As long as this will push the sales of the devices in the level, may rise this recipe. Finally, Apple also deserves the entire environment, such as the sales of the iTunes and App Store, the subscriptions for Cloud storage or the service of Apple Music.

The Services constitute, according to calculations by the market research company FactSet, the Apple-financial year 2016, ten percent of group sales. So Apple is still strong sales of the iPhone (64 percent) and iPad (8 percent). However, with the growing Service business, the Apple will Shine-the balance sheet, even if the Hardware revenue to gush a little less.