Apple announced a new iPhone yesterday, a downsized version of the iPhone 6S featuring a 4-inch display called the iPhone SE. The new smartphone carries all the features that one gets on the original flagship device in a more compact design that is built exactly like the 3 year old iPhone 5S. Interestingly the handset was leaked on numerous occasions and experts predicted that the new smaller iPhone will also be very affordable. Now the US pricing sounds attractive, starting at $399 (Rs. 27,000 approx.), but the Indian pricing is not only higher but saw a bit of a goof up when Apple wrongly announced the starting price at Rs. 30,000 and correcting it to Rs. 39,000 late in the night.
Sure, the price is much lower than the iPhone 6S or even the iPhone 6, but Rs 39,000 for a 16GB smartphone without any memory expansion isn't a very promising deal , especially in a price conscious country like India. Apple says that the new 4-inch iPhone is the most affordable new phone from the company and claims that this category of a compact smartphone is appealed by many. True, but that is not the only reason why Apple has introduced a new smaller iPhone. Overall smartphone sales are slowing down, and even Apple was hit hard when it saw its first ever drop in sales during the company's fiscal first quarter. The iPhone 6S and 6S Plus saw a good response, but sales were lower compared to the year-on-year turnovers. Now a lower priced iPhone could mend some damages.
Customers already using an iPhone 6 or 6S shouldn't even bother, instead Apple believes that the pricing of the iPhone SE would to lure in two types of customers, ones who want to switch from an Android device to the iPhone or someone who is going for his/her first iPhone and doesn't want to spend a lot. But it seems highly unlikely in India. For Rs. 39,000 one can get an equally fast flagship Android smartphone say the new Nexus 6P or even the Samsung Galaxy S6.
Surprisingly, according to some data released by International Data Corporation (IDC) for Q4 2015, Apple overtook Xiaomi in the Indian smartphone market in terms of units shipped. Samsung continued to be on the top followed by Micromax, Lenovo (and Motorola), Intex, and Lava. One of the biggest reasons for the jump has been the reduction in prices that Apple introduced on all of its iPhones. The introduction of the Phone SE could further boost the sales considering the lower price bracket.
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