Excepts from the notes I’ve seen. More as they come in, new notes on top.
Gene Munster, Loup Ventures: Land with iPhone SE, Expand into Wearables & Services. Today’s release is a powerful reassurance that Apple is moving forward, releasing products in the face of dire predictions for production and supply chain disruptions. This is evidence of directional improvement in the supply chain and production along with a well-capitalized company. Apple is making product decisions to advance the long-term (win new customers with the less expensive SE and sell them wearables and Services in the future).
Harsh Kumar, Piper Sandler: The Right Phone at the Right Time. We see the new, lower cost offering as a great way to preserve its customer base given 1) the increasing competitive pressure in China from 5G phones and 2) the consumer may feel their wallets pinched in the current economic environment. Maintaining its customer base is incredibly important as the company looks to sustain services growth. In addition, we feel the launch corresponds perfectly with U.S. customers who may be receiving their stimulus checks over the next several days. Overweight. $300.
Samik Chatterjee, J.P. Morgan: Announces iPhone SE to Leverage Mass Market Volume Opportunity. We continue to see the iPhone SE as a replacement of legacy models, such as the iPhone 8, as Apple continues to look to penetrate lower price tiers of the smartphone market, with particularly significant growth opportunities in emerging markets like India and China. Our most recent shipment forecast, which was revised on April 8th (see our report here), embeds iPhone SE volumes of 25 mn in CY20, including 5 mn in C2Q, 12 mn in C3Q and 8 mn in C4Q, followed by 14 mn in CY21 and 10 mn in CY22. Overweight. $335.
Amit Daryanani, Evercore: Momentum for Better Q/Q Growth in June. The low price point should help Apple regain some of the share it has lost in more price sensitive markets like India and China. The move effectively doubles the addressable market in both India and China. The new phone could also encourage replacements in developed markets, particularly among iPhone owners who have held on to their phone for 3+ years. Outperform. $325.
Daniel Ives, Wedbush: iPhone 9 Ready to Hit Market–20 million Units The Initial Sales Bogey. While launching a mid-cycle budget/entry-level smartphone into the backdrop of a consumer global lockdown and unprecedented pandemic will be head scratcher to some, we note that Apple is viewing this as a low volume, low touch release with little fanfare as the phones are already ready to ship. Outperform. $335.
Carolina Milanesi, ThinkTank: The Purposeful Nature of the iPhone SE. Considering that today’s phones are as big as 6.7 inches, it clear that as cute as it is, a 4inch screen would have been too small for most people. I also think it is important to consider the type of customer who would be drawn to the updated iPhone SE because if there is a model that, in my view, has been designed with a purpose, it is this one.
Neil Cybart, Above Avalon: Apple Unveils a New iPhone SE. Success for the iPhone SE will likely end up being defined more by what it ends up doing to entice iPhone upgraders and Android switchers than by sheer unit sales volume… Once September comes around, new flagship models will quickly become the best-selling models.