Size does matter when it comes to smartphones

Ahead of iPhone SE launch, experts say UAE consumers still taken up with large screens

New iPhone SE smartphones are displayed after an event in Cupertino, California. Apple is seeking to jumpstart sales of its flagship product by enticing more users to upgrade, especially in high-growth markets such as China and India.

Dubai: No one likes to be told they're not big enough, but its because of its smaller size that analysts expect the iPhone SE will not do as well in the UAE as Apple's flagship phones - the larger iPhone 6S or 6S Plus.

That doesn't mean there isn't a niche to be filled by the SE's four-inch screen, which launches tomorrow, but demand here is for screen sizes that are larger than five inches.

According to International Data Corporation (IDC), 53 per cent of all smartphones sold in the UAE were five-inches and larger, an increase from just 36 per cent in 2014. The iPhone 6S has a screen size of 4.7 inches while the iPhone 6S Plus has a 5.5-inch screen

Nabila Popal, research manager for International Data Corporation's Mobile Phone Tracker in the Middle East, Africa, and Turkey, said the Apple's SE will to compete against the companies own refurbished, certified and pre-owned 5S and even iPhone 6.

"It is not going to make waves but it will cater to a certain segment like people who want a new iPhone and cannot afford the premium price of its flagship models. Still I don't expect it to do too well as I think it is priced too high. The demand in the UAE and Gulf is for bigger screens," she said.

Popal said that middle-income consumers are buying bigger screens but on cheaper Android devices.

She predicts that demand will still focus on the older model of iPhone – iPhone 6 – rather than iPhone SE.

That doesn't mean smaller phones don't sell. Apple recently said it sold 30 million four-inch iPhones - out of total 231 million units globally - last year. According to a r eport from CNBC, pre-orders of the iPhone SE in China hit around 3.4 million units. On March 24, Apple began taking pre-orders for its latest device, which has been described as having the heart of iPhone 6S and the body of 5S.

Shonam Khaitan, regional director for Electronics at Souq.com, said iPhone SE targets a very niche set of customers who focus on smaller-sized devices.

"We saw a significant traction among these customers and within its competitors the product was quickly able to take the top slot. In-fact we saw twice the numbers that we saw with iPhone 5S when it was launched," he said.

Comparing iPhone SE with iPhone 6s will not be a "right comparison" as both cater to different target segment and both have their own strengths and weakness against each other.

"We have used very specific and direct marketing tactics to reach out to current iPhone 5/5S /5C and 4S buyers to upgrade to iPhone SE. A large number of iPhone SE buyers have belonge d to this group and we have seen very high conversions. We expect the traction to remain strong in the near future as well," Khaitan said.

Nadeem Khanzadah, head of OmniChannel Retail at Jumbo Group, also doesn't see the SE selling well based on the sales he has seen so far. He said pre-launch orders are "not that great," which he says gives an indication of the demand for smaller screens. "If the 64GB version is priced at around Dh1,499, then they can compete with places like India and China where owing an iPhone brand is a luxury," he said.

Neelesh Bhatnagar, Chief Executive Officer of Emax, said the new models may be attrative to home users, but that business users prefer big screens. "We are not going to play around with the prices due to the launch but if Apple reduces the prices of older devices, then we will. Our strategy is to stick to Apple's online prices," he said.

Source: Size does matter when it comes to smartphones