Last week, Apple introduced its new products, such as the new iPad Air, the powerful Mac Studio desktop computer and the successor to its cheapest phone, the iPhone SE 2022 with 5G, his third generation. The little guy (not so much compared to mini options) from the Cupertino company has already returned renewed in 2020 with an eye on being a gateway to the Apple ecosystem for many Android users.
In a way, with its price of $399 (489 euros or 10,999 pesos), the SE 2020 has already set a very significant change in direction in Apple’s pricing policy and even the entire industry, which at the time seemed completely focused on strengthening the $1000 mark for the most high-end range and starting the ramp-up to $2000 . In fact, it was quite relevant at the time that the 2020 model keep the same prices as the 2016 model.
Corn the current context, with rising inflation in the world due to the energy crisis, the component crisis, the pandemic and the war in Ukraine, and financial institutions looking to raise interest rates, that the price of the iPhone SE 2022 has not skyrocketed, this is particularly relevant.
The price of the third generation iPhone SE has been announced at $429an increase of 30 dollars compared to its predecessor (of 529 euros in Spain and 11,499 pesos in Mexico) which was described by the media as The edge like a 5G tariff due to the increase in the price of its components.
When inflation comes
But even with those, in the current economic council, that two years later Apple has decided to renew (although not much) its cheap smartphone seems a clear message that it does not want to remove the stake it has put on this entrance bridge that moves the 400 dollars and/or 500 euros. The price that many consumerswho don’t value their smartphone as much or aren’t obsessed with the latest technology but want to be part of the Apple ecosystem, they may be willing to pay.
In fact, several analytics companies have already made it clear in 2020 with the launch of the previous SE that up to 26% of its buyers came from Android devices.
Rising prices give more conditioning to all this. With prices adjusted for inflation, the 399 dollars that the first iPhone SE cost -that of 2016- would be the adjusted equivalent of 475 current dollarsaccording to the US government’s inflation calculator.
In Europe, taking into account the case of Spain and taking INE data as a reference, the 489 euros of its basic model would now mean 557 euros adjusted. This is, in both markets, a price higher than the increase they have applied.
We were going to 1000 euros… and the SE came back
The SE, at $429 or €529, is now the cheapest new iPhone you can buy. Behind him, the most expensive phone – the iPhone 13 Pro Max with 1TB of storage – costs nearly $1,200 moreat $1,599 or $1,839 in Spain or 41,999 pesos in Mexico.
The weight of the SE, and even the rationale for its relaunch despite arriving with little change beyond 5G, is clear when looking at charts like the one compiled by analyst Horace Dediu. Here you can see the price range of the iPhone and its historical development.
In it you can see well how since 2017 with the iPhone X passing the 1000 dollar/euro mark the basic price range widensbeing the SE the one that maintains the ground. If there hadn’t been continuity, all of Apple’s smartphone options would have increased, reinforcing the elitist view some consumers have of their devices.
The evolution of the price of smartphones since the Nokia 3310
To follow the historical perspective, in the following table you can see the launch price of some models that those who are already starting to paint gray hair will remember using, to others that can still be considered contemporary. All of them, except the unbreakable Nokia 3310, were considered premium or high-end when they were launched.
|Mobile||Introductory price ($/€)||price with inflation||Year|
|sony ericsson p900||850||1085.79||2004|
If the price of the top of the range has stabilized above 1,000 euros, each year the average price of smartphones sold are down from $305 in 2015 to $214 in 2020according to the latest global data available, which still does not seem to detect the foreseeable rise that the chip crisis must have marked.
Most important, however, is surely seeing your inflation-adjusted prices on the same chart. ANDn this parameter we see that the rise was not so pronounced until reaching the current 1,000 eurosalthough consumers may have noticed more clearly that phones are becoming more expensive as there are fewer carrier financing options, and the bulk of purchases are now focused on free handsets .
As you can see, and apart from the 3310, which was precisely lowering the price of a market that until then seemed reserved for people with significant purchasing power, mobile phones rose in price until the appearance of the iPhone in 2007 and the expansion of Android. .
Since then, there is again a period of certain confinement until from 2014, they go back up. It is the time of phablets, mobile phones enlarge their screens and their visual character as multimedia elements in every way. As a pin from that time, already much closer to the current smartphone model, We chose the iPhone 7 Plus from 2016, which in its most expensive version has already raised its price to $999.. The 1,000 dollar approach that has already been established and the exploration of the 2,000 that are already folding or high-end proposals have begun.
Against this, the iPhone SE 2020 seemed somehow change Apple’s habit of being on the border of these pricesa message that the new version of 2022 has confirmed.
I am Bhumi Shah, a highly skilled digital marketer with over 11 years of experience in digital marketing and content writing in the tech industry.