“Overall, we are positive on the iPhone SE released and see a larger [total available market] for the product than in 2016,” the analysts, led by Jeriel Ong, wrote in a report.
The phone is priced at $399, $499 or $599, depending on the version. It was introduced Wednesday.
The new phone could counteract the weakness in iPhone sales stemming from Apple Store closures that resulted from the coronavirus, the analysts said.
The SE also can “help bridge the gap to the summer, when iPhones could resume a more normalized demand outlook as major Western economies consider a reopening plan,” they wrote.
The analysts affirmed their buy rating and raised their share-price target to $285 from $270.
The stock recently traded little changed at $284.92. It has dropped 9% over the three months through Wednesday.
Meanwhile, J.P. Morgan analysts estimate Apple will build 9 million units of the SEs in the second quarter and 20 million for the year as a whole,
“Our full-year estimate is at the low end of the consensus of 20 million to 25 million, as we factored in the covid-19 impact,” the analysts, led by William Yang, wrote in a report.
When it comes to the iPhone12, the analysts predict production of 68 million in the second half of the year.
“We reiterate our view that Apple still targets to sell the two 6.1-inch iPhones in late September, but a one- to two-month delay is more realistic for the 5.4-inch and the 6.7-inch new iPhones,” they said.