UBS analyst Milunovich: Apple could net $1.5 billion in iPhone 5se's first 12 months
posted by Alan F. / Feb 14, 2016, 10:51 AM
Milunovich sees the iPhone 5se selling 30 million units during its first 12-months on the market. This would be about two-thirds of the number of Apple iPhone 5s and Apple iPhone 5c units he estimates were sold in fiscal 2015. Priced at $500, he expects the new phone to cannibalize 5 million Apple iPhone 6 sales which would wipe out $3 billion in revenue. This would allow the iPhone 5se to generate a net $7.8 billion in revenue for Apple. Figuring a 25% operating margin on the device (the entire company had a 30.5% operating margin in fiscal 2015), Apple would receive $1.95 billion in operating earnings.
At a 25% tax rate, that would leave $1.5 billion in net income for Apple to add to its bottom line. That works out to an additional 26 cents per share for the company. This is all just an estimate from a Wall Street analyst of course, and it doesn't count the additional benefits to Apple such as more Apple Pay-driven revenue (the iPhone 5se is rumored to support the mobile payment service), accessory sales and app sales.
For Apple, releasing a new 4-inch iPhone is a good way to get those not comfortable with a larger 4.7-inch display, to upgrade their handset. Will it work out like Milunovich predicts? We will find out 13 months from now. Stay tuned.
Posts: 155; Member since: Jul 09, 2015
Lets see how it plays out in the next 12 months
posted on Feb 14, 2016, 10:53 AM 0
Posts: 5591; Member since: Feb 10, 2013
I wonder if this will outsell the iPhone 7 I reckon it will because of the lower price and that Apple haven't released a 4" over 2 years
posted on Feb 14, 2016, 12:10 PM 0
Posts: 30719; Member since: Feb 05, 2011
I'm curious about the little beast, but the Air 3 even more.
posted on Feb 14, 2016, 11:19 AM 0
Posts: 98; Member since: Sep 02, 2015
Look more a low end phone for expensive price.
posted on Feb 14, 2016, 11:26 AM 4
Posts: 195; Member since: Dec 14, 2015
It may keep good specs and just offer a smaller, lower resolution screen. If so, Antutu benchmarks would be through the roof considering a small amount of pixels to push. But I have a feeling the will downgrade it some, considering Apple tends to keep their profit margins quite higher than other manufacturers. If the $500 price tag is to be believed.
posted on Feb 14, 2016, 11:35 AM 1
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