Apple may cut the price of the iPhone SE to counter the Pixel 4a. In any case, this is what a report by the investment bank Piper Sadler suggests, relayed by the AppleInsider site. The apple brand would also consider outsourcing the production of the smartphone to India, in order to lower production costs.
While Apple is under threat of financial sanctions from China, the apple brand would prepare to review its strategy for the iPhone SE 2020. This is in any case what a report by the bank d Piper Sadler investment, relayed by our colleagues from the AppleInsider site. In a research note dedicated to semiconductors, analyst Harsh Kumar states that there were several " interesting points » in Apple data.
First, Apple may be ready to give up certain margins on the iPhone SE 2020 in order to boost sales. Clearly, Harsh Kumar explains that the gross margin of Apple on its various services like Apple TV / Music / Podcasts, the Apple Card or Apple Arcade is much higher (63.5%) than that of the sale of the iPhone SE 2020 (30.4%). In this case, Apple would therefore be well advised to sell its smartphone at an even more attractive price, and then to multiply the subscriptions and transactions on its services.
In this way, the apple brand could offer the iPhone SE 2020 at a price equivalent to or lower than that of the Pixel 4a. As a reminder, Google plans to sell the Pixel 4a at $ 349 in its 128 GB version. For the time being, Apple is therefore beaten, with an iPhone SE 2020 available from $ 399.
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Relocation to India is essential
In the event of new tensions in the trade war between China and the United States, Apple may choose to outsource part of its production to India. This strategy was also mentioned by an Indian business daily in early May 2020. According to the publication, Apple would plan to produce 20% of its iPhone there.
Also according to Harsh Kumar, Apple executives met with Indian officials to discuss a partial transfer of the production line up to $ 40 billion. And this for five years. The analyst said the production would be carried out by current Apple partners, such as Foxconn.