Despite the extraordinary circumstances of the COVID-19 pandemic, Apple has announced strong sales of its newly launched iPhone SE. But the company does not see its customers reducing their purchasing decisions to save money, as experts predicted.
iPhone SE “well received”
Apple CEO Tim Cook has included the new iPhone SE in a list of new product releases, “all of which have been very well received by critics and consumers.” The list also included the new iPad Pro, its magic keyboard, and a revamped MacBook Air that debuted shortly before the iPhone SE was announced.
Although not relevant to Apple’s second fiscal quarter, the iPhone SE was mentioned several times in Apple’s April 30 call for quarterly results, the company’s chief financial officer, Luca Maestri, similarly listing it among the latest versions which “have all received exceptional customer response, even in these extreme circumstances.”
The new phone, powered by Apple’s A13 Bionic chip, which was faster than the much more expensive androids, was expected to be popular. But experts also expected buyers to drastically reduce their purchasing decisions to save money, due to the financial implications.
Coming from Android
Jeriel Ong, a Deutsche Bank analyst, specifically asked about “the overall purchasing decisions that consumers make” when calling the results, raising the question, “have you noticed an increase downtick on your product line? So, for example, someone might have moved down the storage range of some products. And do you expect that as unemployment rises and the macro impacts will have an impact on the rest of 2020? “
“I haven’t seen what you’re asking. No,” replied Cook. “I have seen a strong response from customers to the iPhone SE, which is our most affordable iPhone. But it seems that these customers mainly come from wanting or making a smaller form factor with the latest technology. from Android. So those are the two main types of segments compared to someone buying, as you talk about. “
Rather than move away from high-end products, Cook noted the continued strong sales of high-end products in parallel.
“We also saw, we launched the iPad Pro in the middle of it all and the reception there was also incredibly good. And it is obviously our high-end iPad,” added Cook. “And so, I don’t see what you’re referring to, at least at this point.”