Apple

Is Apple working on a $200 iPhone?

There are a lot of good reasons for Apple to release a low-priced option.

by
Joe Rice-Jones
March 1, 2022

Image: KnowTechie

Apple is about to release an updated iPhone SE, but what about the existing model? Well, Mark Gurman at Bloomberg thinks Apple should keep making the existing iPhone SE, but sell it for $200. Yes, a $200 iPhone.

The reasoning laid out by Gurman is solid. Apple doesn’t have anything in the low-end market, as Steve Jobs had a “don’t ship junk” maxim.

That is an outdated way of looking at things, and as shown by the iPhone SE, Apple can make low-cost products that don’t qualify as “junk.”

Here’s why Apple should sell an iPhone for $200

iphone se on purple background — Image: KnowTechie

READ MORE: How much does the iPhone 13 cost?

By continuing to sell the existing iPhone SE at half of its launch price, Apple could take over the low-end from Android.

That opens the door to upselling services, which Apple has already identified as crucial to future success. Everything from Apple Pay to Apple Card to Apple Music could reach a new, paying audience. Gurman also thinks it could be a stepping-stone to a “higher-end iPhone” or selling more products like AirPods.

Keeping the existing 4G iPhone SE would also be perfect for areas that don’t need the 5G coming to the new device. It could also replace the iPod Touch in the line-up, which is ready to be retired.

Gurman also notes that third-party resellers already sell the iPhone SE at under $200, including refurbished devices. Apple could tap that existing market for itself, without much effort.

The only thing that might hold Apple back? The profit margin on the device would be almost non-existent at the $200 price point.

At launch, estimates had the hardware cost of the iPhone SE at $200. Sure, they probably don’t cost that much to produce now, but it won’t be near the 30%+ margins that Apple prefers.

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