New 4-inch iPhone expected to add $5.5 billion in sales for Apple
Outlook from Apple's supply chain has prompted investment firm RBC Capital Markets to forecast that the anticipated new 4-inch iPhone will net 10 million additional handset sales this year.
With an average selling price of $550, analyst Amit Daryanani believes the so-called "iPhone SE" will add $5.5 billion in sales to Apple's bottom line. That would translate to an additional 23 cents in earnings per share, or 2 percent to its fiscal year 2016.
Daryanani believes his estimates are supported by earnings from Apple supplier Dialog Semiconductor, which told investors it expects its revenues to be up in the single digits for the full year. The integrated circuit maker is believed to derive more than 70 percent of its revenues from Apple, and investors look to its performance to gauge potential iPhone sales.
Dialog's guidance for the March quarter was slightly below expectations, which Daryanani said could signal lower-than-expected iPhone sales. However, he also cautioned that Dialog's March quarter could also be affected simply by changes in channel inventory by Apple.
Regardless, Daryanani believes that Dialog's guidance is further evidence that the March quarter will see iPhone sales bottoming out, potentially setting the stage for iPhone sales to return to the upside of investor expectations in June.
Apple is expected to hold an event the week of March 21 to introduce a new, more powerful 4-inch iPhone, as well as a next-generation 9.7-inch iPad. It's believed that both products will launch very soon after they are announced, potentially starting sales before the conclusion of the current March quarter, though the first full quarter of sales would be June.
RBC Capital Markets has maintained an "outperform" rating for shares of AAPL, with a $130 price target.
With an average selling price of $550, analyst Amit Daryanani believes the so-called "iPhone SE" will add $5.5 billion in sales to Apple's bottom line. That would translate to an additional 23 cents in earnings per share, or 2 percent to its fiscal year 2016.
Daryanani believes his estimates are supported by earnings from Apple supplier Dialog Semiconductor, which told investors it expects its revenues to be up in the single digits for the full year. The integrated circuit maker is believed to derive more than 70 percent of its revenues from Apple, and investors look to its performance to gauge potential iPhone sales.
Dialog's guidance for the March quarter was slightly below expectations, which Daryanani said could signal lower-than-expected iPhone sales. However, he also cautioned that Dialog's March quarter could also be affected simply by changes in channel inventory by Apple.
Regardless, Daryanani believes that Dialog's guidance is further evidence that the March quarter will see iPhone sales bottoming out, potentially setting the stage for iPhone sales to return to the upside of investor expectations in June.
Apple is expected to hold an event the week of March 21 to introduce a new, more powerful 4-inch iPhone, as well as a next-generation 9.7-inch iPad. It's believed that both products will launch very soon after they are announced, potentially starting sales before the conclusion of the current March quarter, though the first full quarter of sales would be June.
RBC Capital Markets has maintained an "outperform" rating for shares of AAPL, with a $130 price target.
Comments
Slow (versus 6s and 6s Plus) with poor battery life (versus even the previous gen Galaxy)?
yeah, quite the nude.
I have the 5s, I bought it a month after they released the 6, upgrading from the 4, because I didn't want a bigger phone. It's a fantastic phone, and if there wasn't the prospect of a new 4" iPhone with Pay coming out in a couple of weeks, I'd be planning to keep it as long as it takes, and would likely pay to repair what I consider a warranty issue that Apple won't acknowledge. It's perhaps the best iPhone I've ever had.
Hmm.
Early reviews peg Samsung's Galaxy S7 as a serious contender for best smartphone - iPhone Discussions on AppleInsider Forums
Goto Reply 59 :
Spoiler alert on the first 4 Anandtech Benchmarks, it's not even close :
iOS devices have been consistently updated every year, and is always the best performing units compared to whatever crap Samsung comes out with. What more do you expect? You want Apple to introduce iPhones every 6-months? Then folks like you will complain that the devices are already obsolete after a few months?