Apple Not Expected to Launch Upgraded iPhone SE in 2Q17

Apple Not Expected to Launch Upgraded iPhone SE in 2Q17

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Apple is not expected to launch an upgraded iPhone SE in 2Q17, according to KGI Securities analyst Ming-Chi Kuo. The analyst also expects sales to drop for the second consecutive year.

Slowing sales are being attributed to weak demand in China, slow shipment volume of 4.7” iPhones in 1Q17, and the lack of a new iPhone SE in 2Q17.

1. We are conservative about the sell-through of the 4.7” iPhone and Apple’s market share in China. As such, we estimate 1Q17 iPhone shipment volume of 40-50mn units, lower than the 51.2mn units in 1Q16.
2. Shipment volume in 2Q16 came in higher than expected thanks to upbeat demand for the iPhone SE. However, in order to keep gross margin at a high level and to avoid cannibalization of high-end models, we do not expect Apple to launch an upgraded iPhone SE in 2Q17. Without contribution from a new model, we forecast total iPhone shipment volume will reach 35-40mn units and fall YoY in 2Q17, lower than the 40.4mn units in 2Q16.

Apple will reportedly put the squeeze on suppliers to maintain margins.

1. For those with weak bargaining power, such as FPCB and panel-related makers, the price cut is inevitable given fierce competition due to numerous suppliers and generally low capacity utilization in 1H17. We note that most iPhone suppliers fall into this category.
2. However, a select few suppliers that have stronger bargaining power with Apple may even be able to raise prices. Take Samsung (KR) for example, the company is the main supplier of 3GB DRAM and 3D NAND flash. As DRAM and NAND flash will likely remain in short supply in 1Q17F, we believe Samsung is unlikely to surrender to the pressure, and may even raise its product prices.
3. TSMC (2330 TT, NT$184.5, N) is one of very few suppliers that won’t be affected by Apple’s pricing pressure as its production capacity was pre-booked. It would be very costly if Apple was to switch to a new supplier.

Let us know if you were waiting for a new 4-inch iPhone. Do you think Apple should update the iPhone SE?

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Apple Not Expected to Launch Upgraded iPhone SE in 2Q17
paulMOGG - November 6, 2016 at 10:03pm
I love my SE IPHONE all we need next year is software updates then a really meaning full new Iphone SE updated model in late 2017 /2018
Anyhow - November 6, 2016 at 8:55pm
Apple not expected to do anything sensible anytime soon anyway...
AppleRealist - November 6, 2016 at 6:38pm
I'm not buying a new iPhone until I can get a small phone (5/SE sized) phone w/ 128 GB. I'm holding on to my 4s until It dies or I can buy that SE. I just flat don't want a huge phone, so my next phone may *have* to be Android...
Trump Supporter
Trump Supporter - November 6, 2016 at 4:09pm
Trump will approve of upgraded SE. Vote Trump !!!
paulMOGG - November 6, 2016 at 9:57pm
trump support Ee :- Don't be silly this comment has no relevance your on the wrong site !
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