Apple's upcoming iPhone SE 5G could attract more than a billion Android users - analysts

The current generation Apple iPhone SE
It will allow the company to target the market dominated by Samsung and Huawei. Photo credit: Getty Images

Apple's upcoming iPhone SE 5G has the potential to attract more than a billion non-premium Android users, JP Morgan analysts have said.

The company is expected to launch the iPhone SE with 5G capabilities in early 2022, according to media reports and the brokerage, with the analysts adding the model will allow Apple to target the mid-range smartphone market dominated by rivals such as Samsung and Huawei.

The upcoming smartphone has the potential to lure nearly 1.4 billion low-to mid-end Android phones and about 300 million older iPhone model users, the brokerage estimated.

"Apple's trade-in program for non-iPhones is admittedly not as attractive as the iPhone trade-in values, it could nonetheless lead to an average starting price range of US$269 to US$399 for the 5G iPhone SE, which is still very competitive," analyst Samik Chatterjee, rated five stars on Refinitiv Eikon for his estimate accuracy, said.

Apple's trade-in program isn't available in New Zealand, although some mobile carriers do offer trade-in deals for older phones.

The iPhone SE currently starts from NZ$749, compared with $1429 for the iPhone 13 and $1799 for the iPhone 13 Pro.

According to famed Apple analyst Ming-Chi Kuo, the new iPhone SE will have the same 4.7 inch screen as the current version, with 3GB of memory. The device will have either Apple's A14 or A15 chip inside.

Another iteration of the phone will be launched in 2023, with 4GB of memory and a larger screen, Kuo said.

Since launching the iPhone 13 range and new iPads in September, Apple has scrambled to keep up with the global chip shortage and supply chain disruptions.

Meanwhile, Apple's shares have extended their march, with the company inching closer to the US$3 trillion in market capitalisation.

In a separate note, JP Morgan said consumer demand for major upgrades like 5G models is expected to remain strong and also a priority for supply, even as it wanes for most hardware products including smartphones, TVs and PCs.

The brokerage raised its estimates for fiscal 2022 iPhone SE unit sales to 30 million units and annual iPhone shipments expectations to 250 million units, 10 million higher than a year earlier.

Apple's widely-rumoured Augmented Reality/Virtual Reality headset is also expected to be released next year, although analysts say it's likely to be towards the end of 2022.

 

Reuters / Newshub