Will Apple’s new iPhone SE eradicate low-cost smartphones from China?

Apple last month launched a new low-cost iPhone SE model to recapture the market from Chinese rivals.

In this iPhone SE model, Apple has invested heavily in processors and some network components, while other components such as liquid crystal displays and batteries are almost "intact" from the iPhone 8. It can be said that the iPhone SE 2020 is like "a family car equipped with a supercar engine" in the context of Apple shifting its strategy from focusing entirely on previous high-end models.

Research firm Fomalhaut Techno Solutions (Tokyo-based) conducted a "dissect" of the new iPhone SE to find out its relationship with rival models, and realized that SE is really a bargain.

" iPhone SE almost has the same exterior, motherboard, and screen as iPhone 8 " – Director Minatake Kashio said.

Fomalhaut estimates that the cost of a 64GB SE is about $ 217, 18% lower than the iPhone 8.

The iPhone SE 2020 "interior" is almost identical to the iPhone 8

How does Apple do it? The key lies in the screen. iPhone SE has a 4.7-inch LCD panel, the same size and resolution as the iPhone 6 launched in 2014. In contrast, Chinese manufacturers, including Huawei and Oppo, are all using panels. OLED background even on cheap smartphones.

Besides, the iPhone SE has a battery capacity of about 1,800 mAh. Here, comparing battery life is not easy, because it depends on many other components, and the operating system itself, but other competitors often use batteries of at least 3,000mAh. . The iPhone SE 2020's battery is the same type as the iPhone 11's battery that debuted last year, allowing users to watch videos for up to 13 hours on a single charge, lower than the iPhone 11's 17 hours, according to Apple.

The company also cut costs on cameras. iPhone SE does not have a multi-lens camera cluster, which often appears on rival models. The multi-lens camera cluster, like the eyes of bees or other beetles, brings near-infinite DoF, resulting in high-quality images.

The SE image sensor, which greatly affects the image quality, is slightly smaller than the main camera sensor of the iPhone 11, and the size of the iPhone 8 sensor.

Although the iPhone SE has more photography functions, including removing fonts when taking portraits, they are a result of improvements in image processing technology rather than hardware.

But there are things Apple does not compromise. iPhone SE has a high-end A13 processor, like the iPhone 11; SE's rival devices usually only use the cheap processors of popular smartphones.

High-performance microprocessors are an important component of securing AI and AR tasks, which Apple is focusing on developing.

Apple is also focusing on expanding its array of services, including app distribution. It is seeking to increase its user base by providing them with high-performance processors, enabling complex applications to work smoother, at an affordable price.

Finally, the iPhone SE starts at just $ 399 – significantly lower than the $ 699 price of both the iPhone 8 and iPhone 11.

According to estimates by Fomalhaut, iPhone SE's selling rate is 54% compared to 38% and 48% for iPhone 8 and iPhone 11, respectively.

Huawei is a serious competitor of Apple in the Chinese market

The popular models of Chinese smartphone manufacturers are completely different from the iPhone SE. The Huawei P30 Lite – which retails for around US $ 282 in Japan – is equipped with a rear camera cluster with 3 lenses.

The Oppo Reno A – priced below $ 376 for the 64GB model – has a large 6.4-inch screen and many other interesting things. Both P30 Lite and Reno A have less processing power than flagship models from these companies.

According to U.S. research firm IDC, Apple accounted for 13.9% of all smartphones sold globally in 2019, down 1% from 2018.

Faced with increasingly fierce competition from Chinese rivals, which have an advantage in the field of cheap smartphones, and the growing interest from consumers due to the impact of the corona virus pandemic, iPhone SE is particularly important in Apple's strategy to regain lost market share in the global smartphone market.

But some Apple suppliers have expressed concerns. " It would be unreasonable if high-end models lost the market to the iPhone SE, which had lower profit margins and didn't sell well, " said a leader of a component manufacturing company. said.

References: Nikkei