Apple is trying its best to regain lost market share, iPhone SE may make a comeback

Will the next generation iPhone SE be released in 2020? According to sources, Apple will launch a low-priced iPhone in the spring of 2020 to win back customers in emerging markets and Greater China, where it has lost a large number of customers in the past two years.

The Nikkei website reported on September 5 that Apple Inc. will launch a new cheap iPhone as early as spring 2020. It uses a liquid crystal panel that is cheaper than organic EL and has a smaller screen size than the latest models. Sales of high-end models, where Apple has an advantage, are declining. Apple will compete with products from South Korea's Samsung Electronics and China's Huawei Technologies through a cheap version of the iPhone.

The report said that several relevant people revealed the above situation. The new model is the successor of the "iPhone SE" launched in 2016, and will be launched in spring 2020 at the earliest. Apple is scheduled to hold a press conference on September 10, but it should focus on high-end models launched in the fall. Apple did not respond to the Nikkei's inquiry about the cheap new product.

The screen size of the new low-cost model is basically the same as the 4.7-inch iPhone 8 launched in 2017, and the price is reduced by using a cheap LCD panel. In addition, many components are basically the same as those of high-end models. The price has not been determined, but it will compete with competing products such as Samsung's Galaxy A30.

The report said that the environment facing the iPhone is becoming increasingly severe. In China, the largest smartphone market, iPhone sales are sluggish, and global sales are also declining.

Statistics from the US research company International Data Corporation (IDC) show that in the global smartphone market share from April to June 2019, iPhone accounted for 10%, ranking third after Samsung and Huawei.

Apple hopes to expand its user base with the cheap iPhone and divert users to software services such as online videos, which are seen as the source of future revenue. As it becomes increasingly difficult to increase profits from selling hardware, Apple will accelerate its shift to a business structure that makes profits from services. In order to expand service revenue, it is necessary to prevent customers from losing to low-priced competing products.

According to reports, Apple will launch a quota-based video service "TV+" in the fall of 2019, and is vigorously developing services based on more than 900 million iPhones worldwide. However, the annual sales of iPhones have been reaching a peak.

Apple has been exploring ways to maximize its profits by raising the unit price of the iPhone. Since the launch of the iPhone X in November 2017, the lowest price of its main models has been 230 to 350 US dollars (1 US dollar is approximately 7.1 RMB) higher than before. The new models to be unveiled on September 10 are also expected to continue the price of the current models.

However, 12 years have passed since the first iPhone was launched, and technological innovation is stagnating. With only minor hardware improvements, the high-end route is causing consumers to extend their replacement cycle. As the high-end route has failed to increase sales, the cheap new model, as the successor to the iPhone SE, will strive to expand its customer base.

According to the report, the lowest price of iPhone SE is 399 US dollars, which meets the needs of young people in developed countries. According to data from asset management companies, SE sold about 40 million units worldwide by 2018. Industry insiders believe that "(SE) prevented Apple's global share from falling" in the case of sluggish high-end models.

The report also pointed out that Apple currently has no models that support 5G, and many people believe that "2019 will be a tough year."