Apple generated over $155 billion in revenue over the last 12 months – a factor that has contributed significantly to the company being regarded as the most valuable in the world.
Despite this, the tech giant has experienced declining sales in the last quarter of 2015, driving it to implement some changes through its product design and placement.
The introduction of the iPhone SE is a move that is hoped to help declining sales. As the company’s cheapest ever smartphone, the iPhone SE (Special Edition) offers users a premium phone.
The release of the phone in March 2016 is Apples second attempt at introducing a cheaper phone as a way to gain a bigger market share in the mid-range sector. The iPhone 5C is the other 4 inch model that was introduced and was advertised as an alternative to the bigger models that dominate the smartphone markets in developing countries.
The iPhone 5C failed partly because it wasn’t cheap enough.
“Emerging markets often gravitate toward the larger-screened phones because these customers are less likely to buy both a tablet and a phone,” says John Dawson, chief analyst at Jackdow Research.
iPhones for sale in developing countries such as South Africa, Brazil and China are facing tough competition from Android phones as well as depressed economic conditions.
In China, the iPhone is seen as a status symbol. Shoppers are willing to pay more for the Apple logo despite dozens of imitation smartphones available from Chinese manufacturers.
Trends indicate that outside of the United States, the iPhone SE is a premium phone.
In some places it’s slightly more expensive than it is in the US.
Factors affecting prices of iPhones for sale in developing countries:
- Taxes associated with imports are high.
- The market size and demand for the phone
- Competition