iPhone SE surprise ‘profit maker’ for Apple?

Last week Apple had surprised us with the iPhone SE. An iPhone 6s bundled into the design of a small and condensed iphonese and that too at comparatively reasonable rates. You can now become the proud owner of an iPhone that will be just as costly as an Android Handset that falls in the mid to high range. If you want a powerful device and are willing to compromise on the screen size, then iPhone SE it is!

Reports are saying that this is not a “non-profitable” deal for Apple and the company itself claims that it had dispatched almost 30 million devices with the 4”screens. Apple’s iPhone SE can now make you experience the same raw surge of power that you get with the iPhone 6s models.

According to the IHS data “The $399 16GB iPhone SE costs Apple just $156.20 (in parts) and less than $4 (in labor) to manufacture, Fortune reports. The $400 64GB model is just $11 more expensive because it has more storage than the base version. That means Apple can generate a profit of $239 and $328, respectively, on these models. Multiply that by tens of millions, and you end up with a nice number for Apple.”
Apple will surely be churning out a good profit with the sales of its cheap iPhone where as the Android sets are sold at cost price. The screen of the iPhone SE costs $20, wireless modem $15, A9 chip $22, and battery about $2.15 to manufacture. Apple is not compromising the build quality at all and this is proved by the fact that just for the ideal screen Apple has enlisted LG display, Sharp and Japan Display.

Apple also earns a good amount because of its recycling plans for old models. It uses shells of old models and creates a device with parts collected from different generations of iPhone and brand new chips that are collected from last generation iPhones. Should we get ready to see cheaper versions of the iPhones?

Ming-Chi Kuo the analyst from KGI Securities has stated that the iPhone SE sales may have showed a “lackluster” start but the AppleInsider disagrees and says that the iPhone has been sold out in lots of retail stores and orders for the device are still in waiting for a couple of weeks.

AppleInsider gave a recent writeup confirming “As of Wednesday, the fastest a new iPhone SE will arrive from Apple in the U.S. is next Tuesday, April 12, and that’s just select models. Many models are unavailable until April 20, and that’s with paying extra for expedited shipping. Virtually all models with all carriers out of stock at Apple’s retail stores as well. AppleInsider conducted a check of a number of major markets in the U.S. and found in-store pickup was unavailable for virtually every model, though there was some sporadic availability of certain carrier, capacity and color combinations.”