The 2020 iPhone SE, which starts at $399, is the cheapest new iPhone Apple has ever unveiled, allowing users to upgrade to a new generation of hardware for nearly half the price of a high-end iPhone,media reported. But one of the things apple stakes in the promotional war is to reduce the iPhone SE’s profit margins in the short term.
In its research note, analyst Harsh Kumar said Apple’s current component cost margin of 54 percent is exploring several ways to make the iPhone SE more affordable.
The ambitious plan will not only boost iPhone SE sales, but also eat into Android’s market share in the mid-range smartphone space.
It’s no secret that Android dominates the mid-range phone market, especially now that Apple has been focusing mainly on high-end businesses, but now that the iPhone SE is coming online, the Cupertino-based tech giant is experimenting with a more aggressive way to boost its sales.
At the same time, the analyst said Apple was looking for ways to reduce its dependence on China, and the company recently discussed plans to shift some production to India. This makes perfect sense, given the rising tensions between China and the United States.