Apple’s lower-cost second-generation iPhone SE, released in the midst of a fragile economy wreaked by the coronavirus (COVID-19) pandemic, is a well-timed, suitable fit for budget-conscious South Africans.
As the impact of COVID-19 reverberates through the global economy, ICT analysts believe Apple’s new affordable device, announced last night, may help strengthen the American multinational technology company’s position to better compete with mid-range smartphones from rivals Samsung, Huawei and Xiaomi, during a rough year for the smartphone market.
The new phone, available for pre-order from 24 April, will sell for a starting price of $399 (R7 500) for a version with 64GB of storage, while the 128GB will go for $449 (R8 400) and the 256GB model will be made available for $549 (R10 300).
It shares the same physical design and dimensions as the iPhone 8, with a more improved range of features that are comparable with the iPhone 11s.
While Apple has taken the biggest knock among its competitors in recent months, as consumer spending slumps, Arnold Ponela, research analyst for mobile devices, image printing and document solutions at IDC, believes the new device will attract more consumers to Apple services, a growing driver of its revenue, as the tech giant’s shares fell 1.1%, in the S&P 500 index.
“The phone came at a right time when the global economy is hobbling due to the coronavirus. This model will appeal to budget-conscious customers and it could also attract more consumers to Apple services. A cheaper model may help Apple better compete in a price-sensitive market like SA,” notes Ponela.
While many South Africans love Apple, the high price of its products has made it difficult for most consumers to afford, and the new SE “will be a game-changer in a price-sensitive market which is mainly driven by promotions”, adds Ponela.
The iPhone’s price starts at more than $50 (R930) less than what was previously the cheapest iPhone available, the iPhone 8.
The coronavirus outbreak, which originated in China in December, resulted in almost all technology companies ‒ including Huawei, Amazon, Microsoft, Samsung, Google and Apple ‒ suspending their manufacturing operations for weeks.
This resulted in delayed tech production lines and a significant drop in product sales, leading to Applecutting its sales expectations for this quarter.
Apple joins other smartphone makers which launched phones in the middle of the pandemic, including Huawei, Samsung and Nokia.
The Apple iPhone SE 2 will compete with phones such as the Samsung Galaxy A-Series, Samsung Galaxy S9, Huawei P20 and P30,Huawei P30,Google Pixel 4a and Motorola Moto G7.
Rivals of the iPhone SE second generation
Good value for money
iPhone SE is the second generation of a previous value model that is part of the ninth generation of the iPhone, first launched in 2016.
It is powered by the Apple-designed A13 Bionic, which Apple claims is the fastest chip in any smartphone, and is designed to handle the most demanding tasks and also appears in the iPhone 11 and iPhone 11 Pro.
It comes with a 4.7-inch Retina HD screen, paired with Touch ID for advanced security, a home button, and large bezels on the top and bottom of the phone.
Phil Schiller, Apple’s senior VP of worldwide marketing, said in a statement: “The first iPhone SE was a hit with many customers who loved its unique combination of small size, high-end performance and affordable price; the new second-generation iPhone SE builds on that great idea and improves on it in every way.”
The phone features a 12MP wide-angle single camera that supports portrait mode with lighting effects and Smart HDR, unlocking the benefits of computational photography, including portrait mode, and is designed to withstand the elements with dust- and water-resistance.
It comes in three colours − black, white and red − and has an aerospace-grade aluminium and durable glass design with an all-black front.
BMI-TechKnowledge MD and research analyst Ryan Smit notes the iPhone SE shares quite a few of the iPhone 11s features, which is a significantly more costly phone.
This attractive price point will help it perform well in the local market, as it also means other price-sensitive consumers may see it as a good alternative to Android devices.
“If you are a person who would like an Apple product, as an aspirational good, then that price may seem very attractive given the fact that this phone has the same internal processor and shares quite a few of the iPhone 11s features,” according to Smit.
“Apple has around 15% market share of Internet-enabled cellphones in SA, which grew slightly over the past 24 months. I anticipate that it should do well in the market.”
On the downside, the phone only has one camera and no night-mode, with a fairly out-dated form factor, including a smaller screen than that which many people are used to, and some Android phones at the same price may seem more modern in terms of the device’s appearance, Smit points out.
“Given that the world, and SA, is entering a period of restrained economic activity, it may also be an option for those in the Apple ecosystem who need a new device but are worried about their finances,” concludes Smit.
iPhone SE specifications:
Dimensions: 67.3 x 138.4 x 7.3mm, 148 grams
Processor: A13 Bionic
Screen: 4.7-inch True Tone display
Selfie camera: 7MP camera
Rear cameras: 12MP single 6-element lens, features OIS, flicker sensor for white balance, focus pixels, HDR, and portrait mode for people, video recording at 4K/60fps
Storage: 64GB, 128GB and 256GB
OS: iOS 13
Memory: TBD
Battery: TBD
Connectivity: WiFi 6, Gigabit LTE, Dual SIM with eSIM
Biometric authentication: second-generation Touch ID fingerprint sensor
Wireless charging, lightning connector, 5W charger included
IP67 protection
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