Apple (AAPL) remains in a precarious position with a commanding share of the premium smartphone market with prices in excess of $400, but the company is left out of the majority of the market. According to data posted by Re/code from Strategy Analytics, the sub- $300 smartphone market accounts for over 70% of the market. The question is whether the new iPhone SE will solve the problem with a price point of $399. The other data suggests limited demand exists for 4" smartphones. Investors shouldn't expect the new iPhone to push sales higher, but Apple is making another step towards solving the affordability issue for the rest of the world. The company probably needs to work towards a phone with a larger screen and a $349 price point to really grab more market share. Disclosure: Long AAPL