iPhone SE may be bigger hit than even Apple expected

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iPhone SE 7
Big hits come in small packages.
Photo: Sam Mills/Cult of Mac

The iPhone SE may be Apple’s smallest iPhone, but it’s apparently a big hit — possibly even more so than Apple expected!

After Tim Cook spoke enthusiastically about the iPhone SE during Apple’s most recent earnings call, the company has reportedly upped its orders for the diminutive handset for next quarter.

Reactions to the iPhone SE, which packs Apple’s cutting-edge smartphone internals into a case design that’s years old, have been divided since the 4-inch phone’s unveiling last March.

Some, including Cook, view it as the perfect phone for luring first-timers into the Apple ecosystem, especially in developing markets, where the iPhone SE’s low (for Apple) price makes it an easier sell. Priced at $399 to start, it could become the phone of choice for small-handers or anybody needing a mid-cycle iPhone upgrade.

Meanwhile, doubters point to the smaller, cheaper iPhone as proof that Apple has lost its touch when it comes to innovation — and predict that the iPhone SE will be a certifiable flop. (For Cult of Mac’s take, read our review: iPhone SE proves size doesn’t matter.)

It looks like the doubters might be wrong, though. Industry sources now suggest Apple has increased chip orders for the iPhone SE from 3.5 million or 4 million units to upward of 5 million. Even better, the quarter after that is expected to see similar orders placed.

Given that we’ve heard previously that the iPhone SE is hurting low-cost Android makers, and how iPhone SE units (particularly in gold) are flying off shelves in places like China virtually as fast as they can be piled on, this doesn’t come as a total surprise. However, it’s definitely good news at a time when Apple stock is suffering its worst prolonged fall in 18 years.

Unfortunately, not everything is so rosy. Apple is slowing down orders for the iPhone 6s, and even with the boost in iPhone SE orders, the overall effect may not be enough to boost Apple’s overall profitability in the immediate future.

Still, considering that the iPhone 7 will be coming in September, the downtrend is unlikely to stay the same for too long. We hope!

Source: Digitimes

  • AllanC

    This doesn’t really surprise me. I think Apple overestimated the demand for huge phones. The SE really hits the sweet spot between cutting-edge tech in a convenient form factor. I may buy another one as a spare.

  • BMPVisual

    Why wouldnt they slowdown orders for the 6s? the 7 is coming in september….

  • Dan Boltron

    By now it’s obvious that Wall Street doesn’t care one lick about profitability. It’s ‘the next new thing’ and ‘potential for growth.’ Let those dopes think the extra 1,000,000 means potential for $10,000,000 by the next quarter. Then the next new thing will really be here.

  • springer

    One year later… it’s clear Iphone SE has been a flop. Just look at portion of iphone users in USA using iphone SE!! In single digits percentage. This is even with vendors like Cricketwireless selling iphone SE for mere $180!! Looks like iphone lovers really really really don’t want a tiny 4″ phones any more.