Demand for iPhone SE is 'Very Strong,' Exceeds Available Supply

Apple hasn't divulged sales numbers for the recently released iPhone SE, but during today's second quarter earnings call, company executives said that demand for the device was "very strong" and higher than expected.

According to Apple CEO Tim Cook, the iPhone SE puts Apple in a strategic plan to attract new customers with its affordable price point and powerful internal specifications. Cook says Apple is working hard to meet demand and improve shipping times for the device.

iphonese

We're thrilled with the response that we've seen on it. It is clear that there is a demand there even much beyond what we thought. That is really why we have the constraint that we have.

Since its release, the iPhone SE has been in short supply despite reports of lackluster sales. For the past several weeks, new iPhone SE orders have listed expected delivery times of two to three weeks, suggesting Apple has not yet been able to meet demand for the device.

Priced attractively at $399 for the entry-level 16GB model, the iPhone SE adopted the external design of the iPhone 5s with parts sourced from later iPhone models like the iPhone 6 and the 6s. The result is a 4-inch iPhone that is on par performance wise with Apple's current flagship devices.

Positive news about the iPhone SE comes as Apple is reporting its first ever decline in iPhone sales and its first year-over-year decline in revenue in 13 years. During the quarter, Apple sold 51 million iPhones, down from 61 million in Q2 2015. Revenue was at $50.6 billion, down from $58 billion in the year-ago quarter.

Apple's guidance for Q3 2016 suggests it expects the downward trend to continue, with the company forecasting expected revenue of $41-43 billion. In Q3 2015, Apple posted revenue of $49.6 billion.

Related Roundup: iPhone SE
Buyer's Guide: iPhone SE (Neutral)
Related Forum: iPhone

Top Rated Comments

Benjamin Frost Avatar
89 months ago
Apple should never have stopped selling a 4" iPhone, as the SE demand testifies. Cook said he was surprised at the strength of demand, and that it was a lot higher than he had anticipated.

That, to me, shows his blindness of strategy. For Apple to abandon the optimal form factor for two years was cretinous, and bodes badly for the future as long as Cook is CEO.
Score: 48 Votes (Like | Disagree)
Mac 128 Avatar
89 months ago
We're thrilled with the response that we've seen on it. It is clear that there is a demand there even much beyond what we thought. That is really why we have the constraint that we have.
No Tim, the reason you have the supply constraints you have is because you insist on making 16GB the base configuration. The SE customers are smarter than that. There's plenty of 16GB SEs out there. The supply constraint is on the 64GB models.

Every Apple Store in Los Angeles was out of every 64GB model for every carrier, but they had loads of 16GB models they couldn't give away.
Score: 40 Votes (Like | Disagree)
jayducharme Avatar
89 months ago
I was confident this phone would sell well. IMO, it's a better size for a pocket device. But the big selling point is the internal hardware. I now have a 4" phone that's not a technological compromise. It's got a fast processor, plenty of memory and storage (at least the 64 gb version) and a great camera. It's exactly what I was looking for, and I assume there must have been others with the same opinion.
Score: 37 Votes (Like | Disagree)
ThomasJL Avatar
89 months ago
This is a clear sign that there is strong demand for a 4-inch form factor iPhone. Considering how clueless Tim Cook is, he will probably fail to make the connection and thus choose not to release a 4-inch iPhone 7 in the fall.

Instead of a 4-inch iPhone 7 in the fall, what we'll likely get according to the most reliable Apple product predictor on the planet, Ming-Chi Kuo, will be a 4.7 and 5.5 inch iPhone 7. A key feature in Cook's mind is a missing headphone jack. Cook believes it's more convenient for consumers to have a slimmer phone while carrying an adapter for their headphones.
Score: 26 Votes (Like | Disagree)
syndr0me Avatar
89 months ago
I went from a 6+ to an SE, and I like everything about it better.

It's way easier to hold, especially without a case. The square edges are superior.
The round volume buttons are much easier to differentiate.
The power button makes more sense on top. It's nice that its location matches the new iPad Pro which I also use frequently.
It fits perfectly for one hand use.
Fits in the front pocket of jeans that aren't huge.
I can still do just about everything I did before on the small screen without much compromise.

Cons? The lower contrast screen and increased distance from the glass to the LCD are noticeable. I never had force touch or TouchID2, so I can't comment on those. It's not as nice to view photos.
Score: 25 Votes (Like | Disagree)
Crosscreek Avatar
89 months ago
I love my SE. I'm sure it will be fine for a few years.
Score: 23 Votes (Like | Disagree)

Popular Stories

iOS 16

iOS 16.3 Now Available for Your iPhone With These 4 New Features

Friday February 3, 2023 1:13 pm PST by
Apple released iOS 16.3 in late January following nearly six weeks of beta testing. The software update is available for the iPhone 8 and newer, and while it is a relatively minor update, it still includes a handful of new features, changes, and bug fixes. Below, we've recapped new features in iOS 16.3, including support for physical security keys as a two-factor authentication option for...
iPhone 14 Pro Purple Side Perspective Feature Purple

Gurman: Apple Considering New High-End iPhone Alongside Pro and Pro Max

Sunday February 5, 2023 6:07 am PST by
Apple has discussed selling a new top-of-the-line iPhone alongside the Pro and Pro Max models in 2024 at the earliest, according to Bloomberg's Mark Gurman. Based on this timeframe, the device would be part of the iPhone 16 lineup or later. In a September 2022 edition of his weekly "Power On" newsletter, Gurman said there was "potential" for an iPhone 15 Ultra to replace the iPhone 15 Pro...
ipad air purple

Deals: M1 iPad Air Hits Record-Low Prices at TigerDirect, Starting at $313.99 (48% Off) [Updated]

Saturday February 4, 2023 10:05 am PST by
Online retailer TigerDirect has slashed pricing on the M1 iPad Air in several colors, offering the base 64GB configuration for just $313.99 in Purple and Pink. Note: MacRumors is an affiliate partner with TigerDirect. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. That's a savings of 48% compared to Apple's normal $599.00...
mac studio pink

Apple May Not Launch Updated Mac Studio With M2 Ultra Chip Due to Similarity With Upcoming Mac Pro

Sunday February 5, 2023 6:06 am PST by
A new version of the Mac Studio with the "M2 Ultra" chip is unlikely to arrive in the near future, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that since the upcoming Apple silicon Mac Pro is "very similar in functionality to the Mac Studio," Apple may wait until the release of M3- or M4-series chips to update the machine, or...
HomePod 2 White and Midnight Feature Purple Orange

Apple Releases tvOS 16.3.1 and HomePod 16.3.1 Software Updates

Monday February 6, 2023 10:13 am PST by
Apple today released new tvOS 16.3.1 and HomePod 16.3.1 software updates, with the software coming two weeks after the tvOS 16.3 and HomePod 16.3 updates were released. According to Apple's release notes for HomePod software 16.3.1, the update includes general performance and stability improvements. Notes for tvOS 16.3.1 are unavailable as of yet, but are probably similar to the HomePod...
iPhone 15 Pro Blue Feature

iPhone 15 Pro 'Buttonless Design' Rumors: Everything We Know

Monday February 6, 2023 7:44 am PST by
The iPhone 15 Pro models will feature a "buttonless design" thanks to additional Taptic Engines, according to multiple corroborated reports, so what do we know about the change so far? Apple analyst Ming-Chi Kuo was first to report that the volume and power buttons on this year's two high-end iPhone models will adopt a solid-state design, similar to the iPhone 7's home button, replacing a...
iphone ultra concept daehnert

'iPhone Ultra' Concept Envisions Apple's Rumored Future Top-Tier Smartphone

Tuesday February 7, 2023 5:38 am PST by
Apple has reportedly considered releasing a new top-of-the-line iPhone alongside future Pro and Pro Max models, tentatively referred to as "iPhone Ultra," and one designer has taken it upon himself to envision what such a device could potentially look like. German industrial designer Jonas Daehnert came up with this impressive-looking concept (pictured) by marrying design elements of the...
webkit vs chromium feature

Google Working on Browser for iOS That Would Break Apple's App Store Rules

Saturday February 4, 2023 1:30 am PST by
Google's Chromium developers are working on an experimental web browser for iOS that would break Apple's browser engine restrictions, The Register reports. The experimental browser, which is being actively pursued by developers, uses Google's Blink engine. Yet if Google attempted to release it on the App Store, it would not pass Apple's App Review process. Apple's App Store rules dictate...