Apple Launches IPhone SE 5G To Seize The Asian Mobile Market, Samsung And Vivo Are Nervous

Apple launches iPhone SE 5G to seize the fast-growing Asian market. (photo: Indonesian apple screenshot)

JAKARTA – Apple Inc., which this week has just released a low-cost iPhone SE 5G product, is expected to increase the attractiveness of potential iPhone buyers in Asia.

According to smartphone market analysts, the iPhone is currently in a fierce battle with several rivals from Samsung to Vivo. The two competitors are believed to be starting to get nervous, facing the attack of cheap cellphones from Apple.

After focusing on high-end phones during the supply chain crisis caused by the pandemic, Apple this week launched the iPhone SE with 5G connectivity for $429, which is likely to attract more low-end buyers in emerging markets.

"The new 3rd generation iPhone SE models could be effective in capturing additional market share among price-sensitive consumers, particularly in Asia and particularly in China and India," said brokerage Cowen and Company.

Counterpoint Research said the iPhone SE 4G had previously accounted for 12% of total iPhone sales since its launch in Q2 2020 until the end of 2021. The market in Japan is the largest iPhone market after the United States.

"This time we expect demand to be more open in other markets such as Europe, Southeast Asia and Korea, regions where many consumers are staying away due to the lack of 5G technology support for older SE models," said Counterpoint Research analyst Sujeong Lim.

Apple, which is called the world's most valuable telecommunications and digital company with a market capitalization of around 2.6 trillion US dollars (Rp 37.1 quadrillion), now achieved the highest market share in China at the end of last year.

Their sales record has surpassed Huawei to become the country's best smartphone seller, according to a Counterpoint report.

Cowen and Company analyst Krish Sankar said there was a $30 increase in the price of the new small-screen iPhone SE 5G phone by $30 over the 4G version, as Apple had to cover most of the additional costs of the enhanced technology. However, the margins of this model will be lower compared to the iPhone 13 mini which costs 699 US dollars (Rp. 10 million).

He estimates the iPhone SE will generate a gross margin of between 42%-54%, or roughly half of the gross profit for each device compared to the iPhone 13 mini.

"We believe that the updated affordable iPhone SE lineup will drive consumer interest in the iPhone versus investors' fears of a sharp decline," said Citi analyst Jim Suva.