The news that the iPhone SE2 to a big price cut

The current iPhone SE is getting a price cut to RMB 1,255, and sources say Apple will do so after the release of the iPhone SE3, but of course the moral behind it is deep.

Apple reportedly plans to launch a 5G version of the iPhone SE this March, but the real concern is whether the existing model will see a significant price cut. For years, the tech industry has called for Apple to launch a low-cost iPhone in emerging markets.

Industry insiders have suggested selling older iPhone SEs at $199 pricing. third parties are already reselling current iPhone SEs for less than $200, and there are plenty of refurbished models. If Apple were to launch an official $199 device, it could have a best-selling model in emerging markets. That would provide an option for consumers who don't care about 5G service and don't want to spend $1,000 on an iPhone 13.

The iPhone SE, on the other hand, has a 4.7-inch screen, an A13 processor and a more modern interior configuration. If the iPhone SE can take on the $199 iPhone Touch, Apple could drop the iPod line entirely. But what impact would this have on Apple's traditionally lucrative profit margins? In terms of hardware, the company's margins could be between 30 and 40 percent.

In terms of material costs two years ago, the iPhone SE's hardware costs were right around $200, so the $199 price tag was equivalent to selling at a loss. But 2 years have passed and economies of scale have further strengthened, so the cost may now be significantly lower. Is selling at $199 now enough for Apple to get its regular profit margin? I'm afraid not, but they can use it to increase the sales potential of services and other products in huge new markets, so it can fully compensate for this shortfall.

A supply chain source revealed that for Apple, the iPhone SE price cut to $199 is Apple's way of generating revenue through services and striking a blow to low-cost Android phones with improved functionality.