iPhone SE Winning Android Users And Unlikely to Cannibalize 5G iPhone Sales

The new range of iPhone SE devices

The iPhone SE is helping Apple win over an unprecedented number of Android users, according to new research by Counterpoint. Furthermore, the device’s price point has also encouraged users who are holding on to older Apple smartphones to upgrade. At the same time, the analysts said it is unlikely to cannibalize sales of a 5G iPhone 12.

The new range of iPhone SE devices

iPhone SE Helps Apple Through Difficult Quarter

Obviously, all smartphone makers were hit by the financial impact of the COVID-19 pandemic. Year-over-year, Apple sell-through volumes were down 23 percent. However, the launch of the second-generation iPhone SE at the end of April provided a boost for the company. Counterpoint’s North America Research Director, Jeff Fieldhack, said:

Apple volumes grew through the quarter and were especially helped by iPhone SE volumes. It was not a typical Apple launch with large fanfare and a launch event at the Steve Jobs theatre, which normally also includes a blitz of TV ads. However, the device has been successful and selling above expectations in both postpaid and prepaid channels. Since the iPhone SE launched, carrier stores and national retail have been re-opening. Some channels saw large promos to draw shoppers back to stores. This was especially true within Walmart, Metro by T-Mobile and Boost.

“Pragmatic” Users Not Cannabilizing 5G iPhone Sales

The low-cost device is encouraging existing Apple users to upgrade and is also winning over some Android users. Mr. Fieldhack commented that more than “26% of iPhone SE users moved over from an Android device, which is higher than normal Android to iOS switching,” and that over 30 percent of device users were upgrading from “an iPhone 6S or older handset.”

Furthermore, the device is unlikely to stop users from buying the next generation of Apple smartphone, assumed to be a 5G model. “Our checks show that iPhone SE sales are unlikely to be cannibalizing fall 5G iPhone sales,” Mr. Fieldhack said. “iPhone SE buyers are more pragmatic about price, less concerned with 5G, and the smaller display is not considered a hindrance.”

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