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Description: Apple’s product announcement on Tuesday brought some nice price news to consumers with the release of the latest SE version of the iPhone. This scaled-down iPhone SE is to be priced at $429 when it hits stores on March 18. Though this version of the SE has a faster processor than the previous version, the fact that it can run on a 5G network is a key attractive feature. Reaching more users through a cheaper unit gives Apple a growing subscriber base for some of its other services.

Date:  March 8, 2022



Discussion points:

1) What price point do you have in mind when you replace your smartphone?

2) Are you an iPhone user? If so, do you think you might be switching models soon?

3) The inset box “Target Costing at Apple” on page 9-4 of Wiley’s Managerial Accounting: Tools for Business Decision-Making discusses Apple’s target costing approach. Conduct some research with your classmates to see if you can determine the estimated cost of materials for the SE.

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