New 4-Inch iPhone Set to Make Apple an Extra $5.5 Billion

[Maura]

According to a new report on AppleInsider today, the forthcoming launch of a new 4-inch iPhone model is set to add an extra 10 million units to Apple’s handset sales this year, which could result in the company making an extra $5.5 billion in fiscal 2016.

The prediction comes from RBC Capital Markets analyst Amit Daryanani, who told investors that he thinks that the forthcoming iPhone 5se, as many are calling it, will actually sell more than 10 million units, but because of some cannibalization of bigger models, there will be 10 million net extra sales.

Daryanani says that the new 4-inch phone will cost $550 to buy, and will add 23 cents to Apple's earnings per share, or around 2 percent to its fiscal year 2016 totals.

Speculating on who will buy the new model, Daryanani says that it could be users with older iPhone models such as the iPhone 5s or iPhone 5s, who are now finally ready to upgrade. He also thinks that it will go down particularly well in countries such as India, and doubtless Apple is counting on that, having just this week announced that it is discontinuing the iPhone 4s and iPhone 5c in that country.

Source: New 4