'iPhone SE 2' Likely to Launch This Year... Apple Targets Mid-Range Market (Comprehensive)
Six iPhone Models Including iPhone SE2 Expected This Year
Strategy to Increase Global Market Share Amid Mid-Range Phone Strength
Clash with Samsung's Mid-Range Galaxy A Series Lineup
[Asia Economy Reporter Jinju Han] Apple, which has focused on high-margin flagship smartphones, is expected to strengthen its mid-to-low-end lineup this year. This is interpreted as a strategy in response to the rapidly growing global mid-to-low-end smartphone market. Samsung Electronics is also reinforcing its mid-to-low-end lineup, so a fierce competition between the two companies is expected in the mid-to-low-end market following the flagship segment.
On the 2nd (local time), Taiwan's Digitimes, citing Apple's supply chain in Taiwan, reported that Apple will release a total of six iPhone models this year, including four models equipped with OLED displays and two models with LCD displays.
Previously, Ming-Chi Kuo, an Apple specialist analyst at TF International Securities, released a report stating that the iPhone SE2 would be split into two models and released in 2020 and 2021, respectively. He predicted, "Apple will release a total of five models in 2020, including the 4.7-inch iPhone SE2," and "an iPhone SE2 Plus model will also be released after 2021."
Ming-Chi Kuo expects the iPhone SE2 to be released in the first half of the year, and in the second half, two models with 5.4-inch and 6.1-inch OLED displays, as well as a 6.7-inch iPhone, will be launched. All four models are likely to support 5G. Apple's iPhone SE2 is expected to feature a 4.7-inch display, 3GB of RAM, and an A13 chip. It is anticipated to have Touch ID, a home button, and a single camera lens, with a design similar to the iPhone 8.
The best-selling smartphones globally in Q3 2019 (Source: Counterpoint Research)
View original imageThe 'iPhone SE 2' is Apple's weapon to target the mid-to-low-end smartphone market. Since releasing the $399 iPhone SE in 2016, Apple has launched products like the iPhone XR, which are somewhat more expensive than typical mid-range phones. The iPhone XR was named the best-selling smartphone worldwide in the third quarter of last year by global market research firm Counterpoint Research, but Apple's limited number of mid-range lineup models has posed significant challenges in increasing market share. As the mid-to-low-end smartphone market grows annually, expanding the mid-range phone lineup has become an unavoidable task for manufacturers.
Samsung Electronics is also unifying its mid-range lineup under the A series and strengthening its market approach. The recently introduced A51, priced around 400,000 KRW, is significantly cheaper than the 1.2 million KRW Galaxy S10 and Note10 but is highly praised for its cost-effectiveness, featuring an in-display fingerprint sensor and a quad-camera setup. As of the third quarter of 2019, Samsung's Galaxy A10 (2nd place), A50 (3rd place), and A20 (7th place) ranked within the top 10 best-selling mid-range phones.
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Thanks to the strong performance of the mid-range 'Galaxy A series,' Samsung Electronics continues its dominance by holding the number one market share in the smartphone market in the Middle East and Africa. According to Counterpoint Research, Samsung recorded a 29% market share in this region. The 'Galaxy A series' was the strongest product in this area, accounting for 80% of Samsung's smartphone sales in the region this year. In particular, the Galaxy A10 and Galaxy A20 Core became best-selling models.
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