In recent news, RBC Capital Markets’ analyst Amit Daryanani issued a note to investors on Friday. He noted that the shortage of iPhone SE units both in stores and online bode well for Apple. The analyst predicts that Apple will move over 40 million iPhone SE units this year.
In addition to the 40 million handset units, some of those will cannibalize sales that would have otherwise went to bigger smartphones, which the analyst believes the iPhone SE will move 15 million more incremental iPhone sales for the company this year.
Daryanani believes that with a bill of material calculated around $260, and a base-price of $399 for the 16GB tier, Apple will gain gross margins around 35% with the 4-inch iPhone SE. Although that’s lower than the iPhone 5s and 6s, which were noted to be around 45%, he estimates that the iPhone SE will drive 6.8 billion in revenue and 23 cents in earning per share for the company this year.
As of now, new free deliveries for the device in the U.S. will arrive until April 25th through the 28th. Looking over to China, the analyst notes that wait times are estimated to be shorter due to higher inventory allocated by Apple. He also points out that the company looks to tap into the emerging markets, which could help Apple move more iPhone SE units.
Lastly, RBC Capital Markets has kept its rating for AAPL as “outperformed” with a price target of $130.
Source info: Investors note