Clearing inventory or desperate move to boost sales?

Jan 20, 2019 08:45 GMT  ·  By

Apple has started selling the iPhone SE once again in the United States as a move that’s seen by many as a desperate attempt to boost sales of its otherwise declining smartphone unit.

The device is currently available in the United States exclusively, and it’s included in the Clearance Products section of the online Apple Store.

iPhone SE with 32GB of storage is up for grabs for $249, while the 128GB version is on sale for $299. As MacRumors notes, this is a $100 and $150 discount, respectively, as the device was originally offered for $349 and $449 in the United States.

There’s no change in terms of specs versus the iPhone SE lineup launched in March 2016. The device features the same 4-inch display, and is powered by an A9 chip. Touch ID continues to be offered.

Poor 2018 iPhone sales

Given that Apple has placed this product in the Clearance Products section, the company might try to suggest that it’s just trying to clear out inventory, though the timing is certainly interesting.

Sales of new iPhones are going down due to weak demand in the largest markets across the world, and in the last couple of months, Apple has turned to several cost-saving measures to deal with this decline.

The company has reduced production at several of its suppliers, and more recently, it lowered its revenue guidance for the quarter explaining that it now expects to sell fewer iPhones than originally projected.

In late 2019, it was speculated that Apple considered bringing back the iPhone X to the market at a lower price after previously discontinuing this model in September. This move was considered another attempt to generate a super-cycle, though as it turns out, the idea has already been abandoned.

As for the iPhone SE, there’s still no sign of a second generation. While an upgrade was expected in 2018, Apple is now said to be focused all-in on larger models, with the 2019 lineup to include successors to all iPhones launched last September.