Budget iPhone SE Shines Amid Widespread Q2 2020 Smartphone Sales Decline
The affordable iPhone SE drives Apple's Q2 2020 sales and attracts Android switchers as the broader U.S. smartphone market experiences a significant drop.
The iPhone SE acts as a rare bright spot for Apple during a challenging second quarter of 2020 where overall U.S. smartphone sales drop 25% year-over-year. While Apple's total iPhone sales fall 23%, the company weathers the storm better than most competitors thanks to the strong performance of its budget-friendly device. The iPhone SE even sells above initial expectations across both postpaid and prepaid channels.
A significant factor in this success comes from the device's ability to draw in new customers, with 26% of iPhone SE buyers switching from an Android device. Additionally, 30% of purchasers upgrade from an iPhone 6s or older model, proving the SE effectively targets practical consumers looking for an affordable entry point. Promotional offers from major retailers like Walmart and Metro further boost these impressive sales figures.
Despite the strong early showing, analysts believe the iPhone SE does not threaten the upcoming iPhone 12 lineup because SE buyers prioritize price over new features like 5G. Furthermore, recent data indicates that the smartphone market is starting to recover from the pandemic, with sales growing week-over-week in May and June. Separate research confirms the SE's massive impact, noting it accounts for nearly one-fifth of all iPhone purchases in its debut quarter.