The iPhone SE Could Bring Apple $6.8 Billion in 2016

After being available for only one week, the iPhone SE is already expected to become a huge success among iOS users.

Analyst Amit Daryanani of RBC Capital Markets issued a report last Friday, in which shortages of the iPhone SE both in stores and online are seen as an early sign of success for Apple.

According to the report, it is expected that Apple will sell more than 40 million units in 2016.

iPhone SE Review scr4

With a bill of materials estimated at around $260, and with a starting price at $399, Daryanani believes Apple will achieve gross margins at around 35% with this iPhone model. That is much lower than margins for the iPhone 5s and iPhone 6s, where were in the mid 40-percent range.

However, the iPhone SE could drive $6.8 billion in revenue for Apple in the calendar year 2016. This estimate is based on an average selling price of $450, factoring in the $499 64-gigabyte capacity.

In the meantime, new free deliveries in the U.S. aren’t advised to arrive until April 25 through April 28. The situation is somewhat better in China, the largest market for iOS devices, with estimated deliveries slated to arrive between April 19 and April 22.

As we wrote earlier, the company is making a lot of effort into expanding Chinese market, by enhancing services and pushing new iOS devices through the first wave of availability.