Apple announced on Wednesday that it was replacing its entry-level iPhone SE, which began in 2016 with a new, very pricer model, which would come with many features already reserved for the company’s more expensive handsets. Is.
The simple SEs monitoring the industry were hoping to retire or upgrade, but some Canadian technical experts say the price hike will put iPhones, which are already more expensive than other brands, just the budget Out of access to shopkeepers per conscious shopkeepers.
“Apple prices run on the high side,” said Takara Small, a Toronto -based tech podcaster and CBC radio constantly said. “And I don’t think it will begin or finish with this new version,” he continued, given that manufacturing cost has increased and try to give a more profitable phone to impress Apple Stock holders. Can do.
The new iPhone 16E is a base-level version of the current top-of-the-line iPhone 16 series that will go for $ 899 in Canada.
“Nine-one-Rs, somehow you see it, is a very expensive smartphone,” Patrick O’Rurke, Editor in Chief of Pocket Lint said, a tech website, which on smartphones, tablets, laptops and streaming services Is concentrated.
The price is an increase of $ 320 on the iPhone SE, which is still available at $ 579.
For comparison, an iPhone 15 is $ 999 and the current iPhone 16 is $ 1,129, while the Samsung Galaxy phone starts with $ 279 and the Google Pixel phone starts with $ 599.
“I don’t think that especially in the Canadian market that is killing a very attractive price point, especially when they compare it to Android Ecosystem, said” O’Rurke.
High price means high end features
The iPhone is larger than the 16e SE model, and has a Artificial intelligence tool kit of the face ID and Apple, called Apple Intellation, released in October 2024, as well as many other bells and pricier iphones related to CT.
“The iPhone 16E pack likes our users like the iPhone 16 lineup, with success battery life, the latest generation A18 chip, an innovative two-one camera system and fast performing by Apple Intelligence,” said Kian Drance. , Apple’s Vice President of Apple’s Worldwide iPhone Product Marketing on Wednesday in a company news release.
This new microchip will enable this phone to perform AI functions such as submitting the text and audio automatically, and creating an on-fly emosus as well as improvement in the virtual assistant of the device.
At the end of the previous month, Apple estimated a strong sales growth that it would recover from a dip in the sales of the iPhone as it rolls artificial intelligence features for more areas and languages.
According to Counterpoint Research, SE model sales as total revenue stake for iPhones have come down from 10 percent to about one percent last year in 2016.
A risky pricing strategy?
Trade analysts feel that leaving the low-level price point in favor of the middle level helps Apple as a premium brand.
“Apple can use lower-end phones in markets, where Android phones have a more part without losing too much on high-value iPhones,” D Davidson analyst Gill Luria said, looking at the iPhone 16e sticker price .
In the Canadian market, others are not sure that the approach will work.
O’Rourke says that the iPhone 16E and 16 are just similar to justifying the price differences.
“They both have an A -18 chip. They both have a uniform -sized screen. It is actually the camera that is the difference,” he said. Suggesting that 16E can cut sales of only 16 and 16 Pro models.
“I think it will be interesting to see how it plays,” he said.
Prices may be sales spikes for iphones used by hike
Alex Sebastian, co-founder and COO Orchard, a Canadian company, uses iPhones, says that the problem is deeper than that.
He says that there is no major difference between the phone for the average user.
“If I have given you an iPhone 13 and you have an iPhone 16,” he said, “Many people will not notice a physical difference between the two products that are new to be three years old compared to each other.” Despite. “
Sebasstians also say that shopkeepers have started focusing closely on the price of the phone as the large carrier of Canada has offered to bring more “their own devices” deals and about the cost of a wireless plan Is more transparent. Contract.
And he says that it is possible that Apple can actually give rise to a busy market for iPhones used to leave its proposal of a new phone priced at the entry-level, because “people have always felt that” people have always felt that ” The phones are expensive. “
“If the cheapest new iPhone goes above $ 300, then you know, it is going to push more people as an alternative to detect pre-ownership. So it is good for our business.”
Given the position of the economy and inflation pressure, the little surprise is how many people will spring for Apple’s new lowest priced phone.
“Recent research found that people have been holding their iPhones a little longer,” he said. “And I can’t see how it is not associated with the cost of a living crisis.”
Apple said that iPhone 16E will be available for pre-order on Friday.
Apple has agreed to pay a $ 95 million US to settle a lawsuit, accusing users of deploying their virtual assistant Siri. The suit alleged that consumers were also recorded without using activation words, ‘Hey Siri.’
