The iPhone SE essentially stuffs the capabilities of the iPhone 6S in an updated iPhone 5S shell for $399
Two years ago, Apple Inc. (AAPL) gave in to the relentless march toward bigger screens, releasing the iPhone 6 and super-sized iPhone 6 Plus. Fans of smaller, 4-inch phones were left with the 2013 vintage iPhone 5S, a drought that lasted until March 21 when the iPhone SE was unveiled.
The funny thing is that despite an aging CPU, lower resolution camera and chunky design, people didn’t stop buying those old 4-inch i.99999999999Phones. In fact, at its ‘Let Us Loop You In’ event, Apple said it sold 30 million 4-inch iPhones in 2015.
To put that in some perspective, China’s Xiaomi was the world’s fifth largest smartphone vendor, moving 72 million smartphones in total in 2015.
It’s not just the sales numbers that drove Apple to release the iPhone SE. It’s that Apple is continuing to push Apple Pay adoption and older iPhones don’t support it, even those like the iPhone 5s that have a Touch ID sensor.
The company wants to get everyone using Apple Pay.
Both Apple and third party developers also prefer to have recent hardware in circulation. Older iPhones cut into the adoption rate of new iOS releases and lower the potential market for apps that use new iPhone features