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Apple’s New Budget iPhone SE Less Likely to Drive Sales in China as it Lacks 5G

Apple’s new iPhone SE for the budget-conscious is unlikely to be a significant driver of sales in China, with analysts noting it lacks 5G that most new Chinese smartphones in the same price range offer.

Apple’s New Budget iPhone SE Less Likely to Drive Sales in China as it Lacks 5G

In a ballot conducted on social media site Weibo, 60% of around 350,000 respondents said they’d not buy the $399 model, the most affordable iPhone available.

However, roughly a fifth said they might buy it, and the rest stated they’d contemplate a purchase. Though respondents weren’t asked for reasons for his or her decisions in the ballot, many commented they’d be interested if the price drops further.

Apple’s market share in China, its third-biggest market where it gains roughly 15% of its sales, has shrunk over the previous several years, as Chinese Android manufacturers steadily launch higher-end smartphones.

Competition has solely become fiercer as these rivals are now releasing 5G gadgets compatible with China’s upgraded telecommunications networks, whereas Apple has yet to launch an iPhone with 5G support.

Last week, a number of Chinese online retailers cut iPhone 11 prices by up to 17%. Apple occasionally lets its Chinese vendor partners reduce prices to spur demand, although it seldom allows pricing leeway for distributors abroad.

Most China-based analysts mentioned the iPhone SE would mainly appeal to Apple brand loyalists who don’t need to spend around $700 for the high-end iPhone 11.

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