According to J.P. Morgan analysts, Apple's next iPhone SE 5G has the potential to attract more than a billion non-premium Android consumers.
According to media sources and the brokerage, Apple plans to release the iPhone SE with 5G capabilities in early 2022, allowing the company to compete in the mid-range smartphone market currently dominated by Samsung Electronics and Huawei Technologies.
According to the brokerage, the incoming smartphone has the potential to attract about 1.4 billion low- to mid-end Android phone users and about 300 million older iPhone model consumers.
"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 $269 to $399 for the 5G iPhone SE, which is still very competitive," said analyst Samik Chatterjee, who has a five-star rating on Refinitiv Eikon for his estimate accuracy.
The iPhone SE presently costs $399, while the iPhone 13 costs $799 and the iPhone 13 Pro costs $999.
Apple has been scrambling to keep up with the global processor scarcity and supply chain delays since unveiling the iPhone 13 and new iPads in September.
Meanwhile, Apple's stock has continued to rise, bringing the company's market worth closer to $3 trillion.
Consumer demand for big improvements like 5G models is projected to stay robust and a priority for suppliers, according to J.P.Morgan, even as demand for most hardware products such as smartphones, TVs, and PCs declines.
The firm increased its expectations for fiscal 2022 iPhone SE unit sales to 30 million units and yearly iPhone shipments to 250 million units, up 10 million from the previous year.
According to Refinitiv Eikon, JPMorgan Chase boosted their target price for Apple to a Street high of $210 from $180.