UBS Apple iPhone Monitor Is Bullish, Says SE Should Push Upgrades

UBS’ Steven Milunovich maintained a Buy rating on Apple Inc. AAPL, with a price target of $120.

The iPhone SE

Apple’s new iPhone SE, a 4-inch phone with an A9 processor, Touch ID with Apple Pay and 50 percent higher LTE speed compared to the 5s, is likely to be available at price points of $399 or $499.

While the company announced that it had sold 30 million 4-inch phones in 2015, Milunovich expects an additional 12 million iPhone SE units to be sold.

iPhone Monitor Bullish

The analyst maintained the 52 million unit estimate for the March quarter, despite the iPhone Monitor suggesting demand at 63 million units, based on Google search volumes.

Related Link: These 2 Firms Say iPhone SE And iPad Pro Won't Drive Significant Sales

The Monitor also revealed that total search volume had increased 5 percent year on year, with a 6 percent decline in the United States and an 8 percent rise in Mainland China, year on year.

“That high a figure seems unlikely but might prove directionally correct,” Milunovish stated, while mentioning that Apple indicated an iPhone unit decline of less than 15 percent year on year.

iPhone 7 Expectations

The analyst also pointed out the iPhone 7 was likely to get a new metal casing, which could be waterproof, along with improved Force Touch.

“The most recent change is two large-screen 7 Plus models, one with dual cameras and one with a single camera,” according to the UBS report. Apple is expected to shift to OLED screens in 2017.