Apple’s decisions when it comes to iPhones, are sometimes baffling. But then, the company shows you sales numbers that make it nearly impossible to argue against its decisions, and far be it for me to question them anyway. But let me try to explain one of this somewhat baffling decisions that (if leaks and rumours are to be believed) Apple has taken. We’re of course discussing the heavily-rumoured iPhone 5SE, that is expected in less than a month’s time. In this age of big screen devices, why is Apple once again looking at a smaller iPhone?
According to leaks and rumours, which have become much more believable in the Tim Cook era of Apple, the device will have the Apple A9 processor, but a 4 inch display. So, imagine something like an iPhone 5S, but as powerful as the iPhone 6S. If 85 percent of the market, owned by Android, is to be believed, people don’t want a smaller screen, right? After all, even Apple acknowledged that with the iPhone 6 Plus a couple of years ago.
So what changed?
Of course, long-term iPhone users perhaps find it easier to adapt to smaller screens, but what about the big sales numbers for the new iPhones then? Or is it that the iPhone 6 Plus and 6S Plus haven’t sold as much? Whatever be the case, a more likely explanation is that Apple recognises a market, however small, for users who want smaller but powerful phones. And the company has decided to capitalise on that.
It makes sense too, since even if this number is small, there aren’t many companies in this space any more. This gives Apple the unique opportunity to be the only player in this market, with less competition to worry about. In addition, the fact that Samsung’s Galaxy S6 has sold quite a bit, also gives Apple the incentive to actually recognise this market, once again.
A far more interesting reason why Apple may want a smaller iPhone though is in the company’s product portfolio. Have you ever wondered what all Apple really sells? Sure, it has the iPad, Macbooks, the iMacs etc. but none of these constitute the company’s profits. In essence, Apple is a one product company, making the bulk of its money from its iPhones. As a result, a stronger hold on the phone market would be ideal to go back to shareholders with.
While no one Android OEM can come close to the numbers that Apple returns every year, together, they to eat into the market in some way. United, Android OEMs pose a pretty big threat to Apple’s iPhones. If high margins from more product segments is possible, then it really stands to boost Apple’s revenues further.
So, while the iPhone 5SE, or whatever Apple decides to call it finally, may not be Apple’s ace in the hole, it’ll be a pretty important product. It may also accomplish what the iPhone 5C failed to do, a few years ago. It may provide a cheaper iPhone alternative, which is just as powerful and provides everything that only Apple can, while also boosting its numbers and revenues.
(Som Dasgupta is a freelance journalist who thrives on everything tech. After all the time he’s spent around technology, he’d like to think he’s turned into a robot.)
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