14 DAY TRIAL // Apple’s 2020 iPhone lineup reportedly includes a little something for everyone. In addition to the premium models that are upgraded every year, and which typically retail for around $1,000, the company also plans to launch a new $399 device that would be positioned as the second-generation iPhone SE.
Many see this model as the highly-anticipated “cheap iPhone,” which according to them could help the company expand in markets where spending a thousand bucks on an iPhone isn’t necessarily possible.
Others believe that Apple making the iPhone SE 2, or whatever it’ll be called, too expensive could actually push potential customers to older iPhone models like iPhone 6s and iPhone 7, or even worse, to Android.
But iPhones don’t need to be cheap to sell like hotcakes.
iPhone SE 2, or iPhone 9 as it’s often referred to, will undoubtedly sell well at $399, as it’s a completely new model that allows existing customers to upgrade to latest-generation hardware at an unbeatable price. iPhone 8, for example, is currently available for $449, so at approximately $399 (or even a bit more expensive), this new model would clearly be the best buy. It’s new hardware at a lower price, after all.
Apple has always been a master of setting the right price point for its devices. iPhone 11 is by far the best example. With a $50 price cut versus its predecessor, iPhone 11 is now one of the best-selling new-generation models, and it offers excellent value for the money. There are many people out there who believe the iPhone 11 is a better purchase than the Pro, simply because it offers a good balance of features, hardware, and price.
Apple’s marketing engine will power the iPhone 9 as well, so expect the company to bet big on the combination of latest-generation hardware and unbeatable price. iPhone 9 will be the cheapest way to get an iPhone with the latest Apple chip, and the Cupertino-based tech giant will remind you about this on every single occasion, at least until the new-generation iPhone gets the go-ahead in the fall.
At the same time, Apple continues to be the smartphone manufacturer with the highest brand loyalty out there, with more than 9 in 10 existing iPhone owners out there planning to upgrade to a new iPhone as their next mobile purchase.
Research published by SellCell last year showed that Apple had a brand loyalty of 90.5%, with less than 10% of the existing users planning to purchase a device from a different brand. 79% of the iPhone users said they were pleased with Apple and didn’t see any reason to consider a potential switch to Android.
Back in 2017 when Apple launched iPhone X, the first iPhone with a $999 price tag, many believed this was a flop. Critics explained that pushing iPhones beyond the $1,000 pricing milestone was a risky move, projecting low sales both in the short and in the long term. And yet, iPhone X was the best-selling smartphone in the world in its first full quarter on the market (Q1 2018), with more than 16 million units shipped worldwide.
Despite the $1,000 price tag and despite the criticism.
So no, iPhones don’t have to be cheap to sell like hotcakes. As long as Apple sticks with the correct price points and keeps using the same approach as before, there’s no reason to be concerned about an iPhone not selling well.
As far as the iPhone 9 is concerned, it’s also important to keep in mind that Apple doesn’t expect this to become the best-selling model of the year. It doesn’t even want to. iPhone 9 has a more vital role in the long-time: convince users to upgrade to new-generation hardware, making the transition from older models much smoother for both existing customers and Apple itself.