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The effects of the pandemic in the United States go way beyond public health. It’s also rocking the economy, a trend that is reflected in quarterly smartphone sales compiled by Counterpoint Research. Not surprisingly, smartphone sales in the US, including purchases of the iPhone, are down in the second quarter of 2020.
iPhone sales may have fallen 23 percent in the period, but the results have a ray of hope. iPhone sales may be climbing back again due to the success of the iPhone SE second generation.
The iPhone SE 2020 went on sale at places like Walmart and T-Mobile, with discounts up to 50 percent in some cases. These sales make an already outstanding entry-level phone even more attractive to budget-minded shoppers.
“Apple volumes grew through the quarter and were especially helped by iPhone SE volumes. The device has been successful and selling above expectations in both postpaid and prepaid channels.”Jeff Fieldhack, North American Research Director at Counterpoint Research.
This low-cost iPhone is even attracting Android users with estimates suggesting at least 26 percent of iPhone SE owners have switched from an Android device.
Though popular among budget consumers, analysts like Fieldhack don’t expect the iPhone SE to cannibalize future iPhone 12 sales. Customers who purchase the iPhone SE are concerned mostly with the price. They don’t see a need for 5G connectivity and view the larger display of the iPhone 12 as a detractor.
Apple is expected to unveil the iPhone 12 this fall. The company is planning to release four models in the series, all of which may include OLED displays and 5G connectivity. The entry-level models, the 5.4-inch model and the 6.1-inch model will ship with dual cameras and similar entry-level features.
The company also is working on two iPhone 12 Pro models that may offer a triple camera sensor, 3D LiDAR scanner, and 120Hz ProMotion displays.
Apple is rumored to be streamlining its packaging so that it can ship more units at once. Apple supposedly will remove the EarPods, and the power adapted from its box, sending only a charging cable with the phone. Pricing could start between $649 and $749 for the base model and climb over $1,000 for the Pro models.