Apple’s share price has increased by 1.17% – to $96.21 in early afternoon trading – after Nomura analysts reported that the 4-inch iPhone SE is on course to sell much better than expected.
In a note issued before the markets opened today, the analysts remarked: “SE demand has been well above plan; we believe 2016 SE shipments may be closer to 30 million than our initial 10-20 million estimate”. The analysts further noted their belief that the small iPhone, priced from just $399 in the US, is also “reaching its intended first-time buyer market in China”.
It all bodes well for the future of iPhone sales and the iOS platform; the analysts said: “We expect Apple should be able to hold its 90%-plus retention rate, grow the iOS base, and ultimately restore unit growth.” At TheStreet Ratings, Apple is rated “buy” with the letter grade B – owing largely to, TheStreet explains, the company’s “largely solid financial position” and “expanding profit margins”.
While, in the Apple Online Store, the iPhone SE remains beset by shipping delays nearly three months after its release, Apple is slowly catching up with demand. It is now possible to pick up the phone nine days after ordering – a noticeable improvement from the 2-3 week waiting times that SE buyers were faced with back in April.