Market analysts suggest that the rumored 4-inch iPhone 5se may bring in $5.5 billion for Apple.
The iPhone maker announced the pocket-friendly iPhone 5c in September 2013 along with the iPhone 5s. Apple expected to attract more smartphone customers with the mid-range iPhone; however, iPhone 5c’s magic failed to entice buyers and resulted in lower than estimated sales.
Apple did not launch the successor of the iPhone 5c in the last two years but rumors have been circling that the company will now launch a new version of its mid-range phone dubbed the iPhone 6c or iPhone 5se in March this year.
Amit Daryanani, an analyst with RBC Capital Markets, issued a note to investors laying out a sales forecast of the iPhone 5se. AppleInsider received a copy of the note and reports that the analyst believes sales of the iPhone 5se will be more than 10 million units. However, the high sales volume of the iPhone 5se will cannibalize sales of the existing larger models of the iPhone.
Daryanani estimates Apple to sell the iPhone 5se at an average price of $550, which will result in total sales of $5.5 billion. This additional sale will add 23 cents to the company’s earnings per share, or around two percent to Apple’s fiscal year 2016 totals.
The market analyst also suggests that people who have not upgraded their smartphones in the last three years or the owners of iPhone 5s are more likely to purchase the upcoming iPhone 5se. Apple cited its focus on the Indian market in its last earnings call, so it's probable that the iPhone 5se will aim at attracting customers in India.
A previous report suggests that Apple has stopped selling the entry-level iPhone 4s and iPhone 5c in India. The company is probably setting up the stage for the launch of the iPhone 5se in the country.
Apple is expected to hold a media event on March 18 where the company is rumored to unveil the iPhone 5se and the next-generation iPad Air. These two products are estimated to hit the shelves on March 18.
Ming-Chi Kuo, an analyst with KGI Securities, predicts that the iPhone 5se will include the A9 processor, which is the same found in the latest iPhone 6s and the iPhone 6s Plus.
The iPhone 5se is also speculated to include TouchID, which will allow users to lock and unlock their handset, authorize online payments and more quickly and conveniently. The iPhone 5c came in a polycarbonate body but rumors suggest that the iPhone 5se will have a metal frame, which will give it a premium look.
Apple as usual has not commented on any of the speculations and iPhone lovers will have to wait a few weeks to find out if the company will reveal a new 4-inch iPhone in mid-March this year.
Photo: John Karakatsanis | Flickr
