Taking a look back at seven days of news across the world of Apple this week’s Apple Loop includes the death of a beloved iPhone’s successor, the MacBook Pro’s successful first week, Apple’s secret discounts on your next iPhone, how the iPhone 7 compares to the older iPhones, where Apple’s competition is coming from, the importance of Apple Music, Reddit’s delayed reaction to the MacBook Pro, and a new version of Snakes and Ladders for Cupertino.
The iPhone 7 represents a push forward in Apple’s design philosophy towards a minimalist smartphone. With this brave new world approaching, there was a question of what happens to the iPhone SE. Introduced in March this year, it can be seen as either a budget iPhone 6S or the ultimate iPhone 5S. Many expected the SE line to be updated in March 2017. But if you were hoping for an iPhone SE 2, noted analyst Ming-Chi Kuo has some bad news for you. Forbes’ Gordon Kelly reports:
So why would Apple consider such a self inflicted wound? According to Kuo the reasoning is twofold:
1: To increase margins on the 2016 iPhone SE as its older components reduce in price
2: To reduce risk of cannibalisation that a 2017 iPhone SE could have on sales of the more profitable iPhone 7
It is well known that Apple is far more interested in profit share than market share, so on a business level both these reasons make financial sense. Given concerns over iPhone 7 sales, it also wouldn’t be great PR if future financial reports forced Apple to admit the iPhone 7 was impacted because customers preferred the company’s budget model.