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Apple has developed a new iPhone, the iPhone SE, that is intended to draw in more customers in emerging nations and tap into the lower-end smartphone market in China. The iPhone SE in China will be available in four colors and will cost RMB 3,288 ($505 USD) for the 16 GB version and RMB 4,088 ($630 USD) for the 64 GB model. Preorders start on March 31, 2016, so we’ll have to wait and see how well it performs in China. Continue reading to learn more about Apple’s upcoming iPhone SE release as it relates to business:

Apple’s New iPhone SE is Targeted at Price-Conscious Consumers

In hope of increasing their China business revenue, Apple added a new target market to their China business plan: price-conscious consumers. Naturally, a new phone is needed for this section of the market because Apple’s current phones are perceived as too expensive by these consumers.

The iPhone SE is Generating Interest Already

Apple’s plan just might work. Li Sheng, a Chinese citizen from Beijing, admitted that he’s never been interested in buying an Apple phone before because of the price, but the iPhone SE looks like a good deal to him. For the first time, Li Sheng wants an Apple phone.

Apple’s iPhone is a Status Symbol in China

The iPhone is a status symbol in China, so it will be interesting to observe whether or not their position as a status symbol will weaken as a result of the iPhone SE. Another potential problem is some of the iPhone users switching to the iPhone SE. An iPhone user has already expressed a desire to switch to the iPhone SE: “My favorite look has come back. My 6S will be retired.”

Apple’s China business is one of their top markets, so it will also be interesting to watch the change in revenue from their China business in response to the iPhone SE launch. Will the high-end users remain loyal or drop off because they no longer view it as a status symbol?


So far, the lower end of the smartphone market in China has been dominated by Samsung, Huawei, Xiami, and Meizu. All four of those companies sell Android-based smartphones. But now Apple wants a piece of the lower end smartphone market in China too. To accomplish their goal, Apple has developed the new iPhone SE that has a lower price while remaining a high quality product.

Contact us for more information on the demographics and psychographics of various target markets in China. We have experience working in China to help businesses mitigate risk and stay in compliance with China law.

If you are interested in knowing more about China, download the first free chapters  of my book here.

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