Micromax, Xiaomi, Lenovo not threatened by new iPhone SE

Apple is one of the most sought after brands in the world, but in India, which is one of the most promising markets for smartphones, the American Multinational sees tough competition from companies like Micromax, Xiaomi and Lenovo.

Presently, these rivals are keeping a close watch on Apple's move to go back in time and launch a 4-inch screen smartphone. These rivals are of the opinion that Indian market has clearly preferred larger screen sizes in the future.

Executives from these companies point out that 5- or 5.5-inch smartphones that come with specifications of high-end phones are affordable in the Indian market, but this move from Apple can still work because of the strong brand appeal that it enjoys in the country.

"The minimum size of the phone that you would hold comfortably in your hand, is the 5-inch today, can be 5.3 inch tomorrow," Bin Lin, billionaire co-founder and president at Xiaomi, told ET recently.

Sudhin Mathur, who heads the smartphone business at Lenovo India, said that the 5-inch screen size has become too mainstream because people need to watch multimedia content.

"Even at cheaper price points, people prefer to buy bigger displays," he added.

The comments have come at the time when Apple has launched its latest iPhone, called iPhone SE or special edition. The device comes with a 4-inch device, an upgraded A9 processor, near-field communication to support Apple Pay and a 12-megapixel rear camera.

What, however, can work in favour of Apple is that people who love the brand want to own its device irrespective of the screen size, and when it comes to the pricing, Apple might just get lucky with the risk it is taking.

"The aspirational brand appeal that Apple commands, would still draw in many, especially if they price their 4-inch phone around the Rs 25,000 range," said Prashant Singh, MD, Nielsen India.

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