Before lunch, the most important news of the day – that’s TechTäglich, W&V’s technology column. Today with the iPhone price breaker and with the TV series of probably the bravest president in the world.
Apple: Is the 249-euro iPhone coming?
Even if Apple is slowly running out of time until the expected presentation on March 8th – in the new month the next generation of the cheap iPhone SE should definitely be in the house ( W&V reported ). The current model costs 399 dollars in the USA and 479 euros in Germany. The new SE 3 should remain at these prices, although 5G and the somewhat more modern design of the iPhone X/XR are now being added for the first time. But Bloomberg’s Mark Gurman, currently the most accurate Apple observer, has a completely different vision of a budget iPhone. He thinks aloud that Apple will keep the previous SE 2 on offer – and will sell it for a record price of $199 in the future. In Germany, that would then amount to 249 euros.
The arguments for the iPhone at a mini price
- Cost: According to internal documents, Apple was already able to produce the iPhone SE 2 for around $200 two years ago. In the meantime, the costs for the no longer up-to-date A13 chip and the retro technology with the home button have probably fallen significantly. As a result, Apple could even make money with $ 199 – if not the dreamlike 30 to 40 percent margin that the US company usually rubs its hands about.
- New markets: With the argument “Steve Jobs would not have sold junk” Apple has long defended itself against demands for an even cheaper iPhone. But the need for such a device would be huge, especially in emerging markets such as India, Africa, South America and parts of Asia, where Android has dominated so far. Example India: Here the iPhone market share is currently only 5 percent. Gurman speculates that a $199 iPhone would “sell like hot cakes” in the US as well. This would allow Apple to assert itself against cheaper alternatives from the Android world, with its equipment, with its processing”.
- Services: Apple’s services from Music to TV+, Fitness+ and the Arcade game subscription to iCloud storage are a booming billion-dollar business. But these services can usually only be used with Apple devices. Expert Gurman predicts for the $199 iPhone: “In the long term, Apple could generate more revenue from services and attract more users to its ecosystem. They would then also be more willing to try AirPods, an Apple Watch or – later – a higher quality iPhone.”
- iPod touch: The touch, essentially an iPhone without a phone, is still bobbing through the Apple range with outdated technology dating back to 2016. It is primarily intended to serve young users as a music player, for chatting and for playing games. But he has long been too unattractive and from 229 euros also too expensive. With the 249-euro iPhone, Apple could finally bury its last iPod with honor.
Conclusion: There are many arguments in favor of the price breaker. Mark Gurman’s conclusion: “It’s unclear whether Apple will ever take this step, but there is probably a no better time than the release of the 5G iPhone SE next month.”
