Tuesday, March 22, 2016

Technology: Small screen, small price: Apple wants to boost iPhone growth – ABC Online

Tuesday , 03.22.2016, 09:37
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With a starting price of 489 Euro one can hardly speak of a cheap iPhone. But at least for Apple ratios of the price point for the new entry-level smartphone has failed actually low with the smaller 4-inch screen.

The sales curve of Apple successful product known iPhone since the premiere in 2007 only one direction: steeply upward. But recently warned Apple CEO Tim Cook investors for the first time before that the expired quarter probably fewer units sold than in the same quarter last year.

With a new entry-level iPhone in smaller 4-inch size, Cook now wants to brace against this trend and takes it even lower margins in purchasing. For competitors like Samsung, Huawei or Lenovo branded Motorola this change of course is a challenge.

2014, Apple had taken the first time a tentative start to open up with the iPhone 5c in colorful plastic casings a new market segment. The advance time had only limited success because the engineers in Cupertino packed 2014 principle is outdated compared to the former top model technology in the 5c, such as the camera.

At the current entry-level model iPhone SE Although everything is a number smaller than the current models of the 6-series. And it also lacks the pressure sensitive screen ( “3D Touch”), in which you can view as a right-click with stronger pressure on the display additional content. But otherwise meet virtually all other technical features to the current flagship iPhone 6S. These include the faster processor, fast LTE, fast wireless internet, the fingerprint sensor “Touch ID”, the 12-megapixel camera and NFC chip, which is required among other mobile payment systems like Apple Pay.

in the US, Apple pushes the price for the smallest version of the iPhone SE for the first time below the psychologically important threshold of 400 dollars, even if this will be exceeded in the store with the local taxation generally. Buyers in Europe get the weak euro to feel and have at least 489 euros on the table (including VAT).

At this price point but can many mobile provider still lace contract packages in which the iPhone SE for a symbolic euro changing hands, even if the customer then abstottern the true purchase price for the new smartphone over a two-year contract indirectly.

After the introduction of the iPhone models 6 and 6 Plus in September 2014 was the impression get, when Apple had completely passed by the smaller screen sizes below 4.7 inches. However, the sales statistics refutes this assertion: “We have sold only 30 million units with 4-inch screen in the past year,” said product manager Greg Joswiak. It is a rare case that Apple detail sales of a single iPhone product line makes.

With the new iPhone SE Apple is now the one trying to move owners of older compact smartphones to a new purchase. Since the new device is also cheaper, Apple will make a new attempt to score in the emerging markets, which have to date almost unrivaled dominate the market, especially Android smartphones. This also fits into the concept that Apple in countries such as India plans to open new stores in order to stimulate sales of the iPhone.

A similar approach Apple with the new compact iPad Pro. Many users of a tablet computer was the large 12.9-inch display of featured autumn Pro model too large and the device despite impressive technical equipment simply too expensive. The new small iPad Pro also has most of the technical features of the adult, but can be offered more cheaply. At the same time remains the iPad Air 2 in the program, can compete against cheaper Android and Windows tablets with Apple. Whether that is sufficient to stop the downturn of recent quarters the iPad, Apple must still prove.

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Apple Chef Cook takes anyway into account, each sold iPhone and iPad to earn an average of less than the year before. as long as this will drive the sales of the devices in the air, this recipe can rise. Finally, Apple deserves the entire environment, such as the sales in iTunes and App Store, the subscriptions for cloud storage or the Apple Music service.

the services will account for ten percent of consolidated sales in the Apple finance 2016 according to the market research firm FactSet. So Apple will indeed still strong from the sales of the iPhone (64 percent) and iPad (8 percent) dependent. However, with the growing service business, the Apple-balance is also still shine when the hardware revenue gush a little less.

 

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