Mainstream Apple iPhone SE Becomes A Big Hit In The U.S. And Europe

Apple introduced its mainstream iPhone SE earlier this year to fill a sizable gap in its smartphone lineup. Priced from $399, the iPhone SE crams in the brainpower from the iPhone 6s (Apple A9 processor, M9 motion processor) into the body of the iPhone 5s. Given that the iPhone 6s starts at $649, the iPhone SE represents a pretty good bargain if you’re firmly entrenched in iOS land.

The latest research from Kantar confirms the iPhone SE’s popularity, at least in two regions around the globe: Europe and the United States. During the second quarter of 2016 in Great Britain, the iPhone SE managed to grab the first-place spot in smartphone sales with a 9.2 percent share (just ahead of the iPhone 6s with 9.1 percent). Brisk iPhone SE sales helped iOS grow its share of the mobile OS market by 3.1 percent (to a total of 37.2 percent) in Great Britain.

Apple saw gains in France, where its share of the smartphone market rose to 21 percent. Apple also saw an increase in iPhone sales for the first time in nearly a year in Germany, taking its share to 14.2 percent. Overall, Apple’s overall smartphone share in the EU5 (Great Britain, Germany, France, Italy, Spain) rose 0.7 percent during the second quarter to 18.2 percent.

iPhone SE Front Back

The iPhone SE was the third best-selling smartphone in the United States with a 5.1 percent share behind the first place iPhone 6s/iPhone 6s Plus (15.1 percent) and second place Samsung Galaxy S7/Galaxy S7 Edge (14.1 percent). The iPhone SE’s lower price point allowed it to gobble up nearly 23 percent of all iPhone sales.

However, that lower price point also led to a lower average selling price (ASP) for iPhones. The ASP for iPhones was nearly $700 six months ago. But in Apple’s most recently completed quarter, the ASP fell to just $595, which is an incredibly steep decline for the company.

It should also be noted that the iPhone SE hasn’t been a success everywhere. The smartphone was only able to capture 2.5 percent of the critical Chinese market, where Apple is facing tremendous pressure from homegrown OEMs that continually spit out higher-spec’d smartphone for less money. And the 4-inch form-factor isn’t exactly a hot seller in the region.

“With strong demand for the iPhone SE throughout the second quarter, it will be interesting to track whether iOS growth will continue through the third quarter, assuming that supplies become less constrained,” writes Kantar analyst Lauren Guenveur. “Anticipation for the newest iPhone, usually released in late September every year, typically means a weaker summer period for iOS.”

Speaking of the next flagship smartphone from Apple, the iPhone 7 and iPhone 7 Plus are expected to debut next month with A10 processors, 3GB of RAM (on the Plus model), a touch sensitive home button and dual cameras (again, only on the Plus model).