iPhone SE profit margin of 35%, creating a new low for Apple products

iPhone SE is the lowest-priced smartphone ever launched by Apple. The cost of this new product is about $260. Based on the price of $399, the iPhone SE has a profit margin of about 35%, which is the lowest profit margin in Apple's history. iPhone.

The release of the iPhone SE will reduce Apple's overall profit margin in the short term, but in the long run, the iPhone SE will help boost Apple's revenue. The iPhone SE starts at $399 and is the same as the iPhone 6s core module. But the screen size is smaller and the price is 27% cheaper. Apple's launch of the 4 吋 iPhone will attract more consumers with lower budgets and change the strategy of vying for this part of the market through price cuts of old products.

However, the release of the iPhone SE has caused investors to worry that Apple's stock price has fallen sharply due to the decline in profit margins. In 2013, Apple's share price dropped sharply, mainly due to the decline in product profit margin. However, this situation will not be repeated after the iPhone SE is released. In 2015, Apple iPhone sales were 53% higher than in 2013, and Apple sold 30 million 4 iPhones in 2015. iPhone SE in 2016 Sales are expected to exceed this value, and before the iPhone 7 was released, the iPhone SE brought growth momentum to the Apple product line.

In the long run, iPhone SE will bring many new users to Apple. The pre-sale status of this product in emerging markets exceeds expectations. This entry-level iPhone helps Apple compete with Android vendors in emerging markets, while iOS The user's stickiness is high, and the iPhone SE has opened up a new market for higher-margin Apple products.

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