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Low-cost smartphone makers already feeling impact of iPhone SE

by Killian Bell | April 21, 2016April 21, 2016 4:14 am PST

Apple’s new iPhone SE may not have been out all that long, but it’s already having a major impact on low-cost smartphone makers. According to a new report, the $399 device is stealing market share from the likes of Huawei, Xiaomi, and Oppo in emerging markets.

“The launch of relatively low-priced iPhone SE in China has squeezed market share from local brands, including Huawei, Xiaomi Technology, Vivo and Oppo, affecting the earning performance of these brands, said the sources,” according to a DigiTimes report.

Suppliers throughout Asia are said to carefully considering their inventories for parts and components as a result. Some camera makers, which have built up big inventories due to high demand in 2015, have only shipped 70-80 percent of their projected shipments.

Apple’s decision to increase the voltage of its power supply devices from 15 volts to 20 volts has also left power supply makers with excessive inventories as many of their components are now incompatible.

This is a pretty staggering impact when you consider the iPhone SE has been on sale for less then one month. But it’s proof that even though demand for the device seems weak in the U.S. and Europe, fans in emerging markets like China can’t get enough of it.

DigiTimes

Killian Bell

Killian Bell is a 20-something technology journalist based in a tiny town in England. He has an obsession with that little company in Cupertino...

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