Apple seeks to boost sales with cheaper iPhone SE

Company to tackle projected drop in iPhone sales with launch of updated model

An iPhone sits on display inside the Apple store on Fifth Avenue, New York, in  January  2016, when   Apple reported the slowest iPhone earnings since 2007. Photograph: Andrew Burton/Getty Images

An iPhone sits on display inside the Apple store on Fifth Avenue, New York, in January 2016, when Apple reported the slowest iPhone earnings since 2007. Photograph: Andrew Burton/Getty Images

 

When Apple launched the iPhone 6 in 2014, its move to a larger screen yielded the most profitable quarter in US corporate history. Now, as the company faces the prospect that iPhone sales might fall this year for the first time, it is hoping a smaller and cheaper device might provide a much-needed sales boost.

Tomorrow Apple is expected to unveil a 4-inch iPhone SE, the same size as the 5 series introduced in 2012 but with updated technology, including Apple Pay, a better camera and a faster processor. New iPads with the same keyboard and Pencil accessories that arrived with last year’s Pro version and extra bands for the Apple Watch are also expected.

It is unusual timing for a new iPhone. After the first iPhone was launched in January 2007, the device was updated every June until 2011’s 4S, which began the autumn refresh. A fuller update is still expected in September.

Apple’s guidance to investors for the quarter ending in March suggested iPhone sales were tracking below Wall Street estimates.
- (Copyright The Financial Times Limited 2016)