Apple’s new target might be quantity without a significant compromise on quality. They are aiming to sell more devices in 2020 than ever, which is typical for every single company. Some experts think that Apple’s ultimate objective is to push services like Apple Music and Apple TV.
Hardware vs. digital services
The truth is that Apple makes more money through its digital services than through the hardware pieces. Apple reports over a billion devices sold and another 200 million being desired to be sold. That would boost revenues for the company immensely.
Apple hopes to boost sales by pricing the new iPhone SE2 at a more affordable price while also packing it with many improved parts and overall features compared to its predecessors.
This approach might be smart, and it would show immediate effect in price-sensitive markets like India, where Apple has the potential to completely rewrite the story of smartphone sales in a whole year.
Prioritizing young customers
Apple seems to want to attract younger buyers that desire to buy an iPhone for the superior technology but cannot afford the high price of Apple devices. At the moment, the lowest-priced iPhone costs $650-$700, which is almost three times more than an entry-level Android device.
Apple wants to change this by pricing the iPhone SE2 (or iPhone 9) at approximately $399.
This will be an ultimate game-changer in markets like India or China, where pricing has the most influence on a potential buyer.
Apple might furthermore reduce the pricing of the supposed SE2 by manufacturing it in India, where labor is cheap, and demand is high.