According to a report by 9to5Mac, Apple Inc. (NASDAQ:AAPL) plans to announce its new iPhone 5se. the launch date will be Tuesday, March 15, and a lot of questions have come up as to how the new iPhone will affect the firm especially in terms of sales and share performance.
Not a lot has been revealed about the launch, but a lot is expected from the device seeing as it has taken quite some time since Apple launched the iPhone 5s and 5c. As far as the hardware is concerned, the device is expected to have the M9 and A9 processors. It is also supposed to feature an NFC processor and an iPhone 6 camera. Since the device will target a particular demography that prefers smaller devices, it will be a great addition to the firm.
The added features found in the iPhone 6 will also give the device an opportunity to compete on a level playing field with the latest devices from other firms. They will also help to create more appeal to the target market. According to Steve Milunovich, Apple sold roughly 46.6 million iPhone 5s and 5c in 2015, thus representing 20% of all iPhone sales in the year.
The company hopes that the new device will attract such numbers or even better. Sales for the iPhone 5se have been estimated at 30 million over the next 12 months at an average price of $500. The device is expected to generate up to $7.8 billion in revenue given an operating margin of 25% compared to 30.5% for 2015. Given a tax rate of 25%, the firm can attain a net income of $1.5 billion. This would translate to a $0.26 increase in the company’s earnings per share.
These numbers would be good news for the company and its investors because the share value of the firm will increase marginally. It will also be advantageous to the enterprise’s competitive position against its rivals.