How Much Is an iPhone SE and Why Is It So Affordable?

Apple is known for producing high-quality smartphones with cutting-edge technology, but the iPhone SE model is surprisingly affordable at just $400. Despite having more processing power than many $1,000 Android devices, it’s one of the cheapest iPhones on the market. So, why and how was Apple able to make such an affordable phone?

The primary reason why the iPhone SE is so cheap is due to its components, most of which are borrowed from older models. For instance, the SE’s display, which is typically the most expensive part of any smartphone, is the same one featured on the iPhone 8, a model that’s already four years old. Meanwhile, its cameras are from the iPhone 7. By using older components, Apple can take advantage of their cheaper costs, which allows the final product to be more budget-friendly.

However, assembling all of these older components adds another expense. Apple found a way to save money by using assembly lines that were already created for products like the iPhone 8. By giving the SE an identical chassis, it can be assembled the same way, without the need for an entirely new production process. When you combine low-cost components with low-cost production, it’s easy to see why it’s affordable for Apple to price the SE at just $400.

Despite all of these cost-saving measures, the total profit earned on each iPhone SE isn’t nearly as high as an iPhone 12. So, why would Apple bother offering a low-cost phone instead of forcing customers to buy a higher-priced model? By offering a low-cost iPhone, Apple is able to effectively compete in cost-sensitive markets like China and India, which have been historically dominated by cheap Android devices.

At the same time, price-conscious customers in the US, who may typically buy Android, have an opportunity to enter the Apple ecosystem at a more affordable price. Also, consider how Apple’s business model has changed in the past few years. Their services category is second in profitability only to the iPhone. The more users Apple has, the more people they can rope in to using their services like iCloud storage and Apple Fitness Plus.

In conclusion, the iPhone SE is so affordable because of the use of older components and production processes borrowed from previous models. By offering a low-cost phone, Apple is able to compete in cost-sensitive markets and attract price-conscious customers who may typically buy Android.