Apple Analyst Predicts Four-Inch iPhone, New iPad And Watch Bands Next Week

Drexel Hamilton’s Brian J. White maintained a Buy rating for Apple Inc. (NASDAQ: AAPL), with a price target of $200, saying that the Phone SE could result in the company having a stronger position in the midrange, luxury smartphone market.

Apple is scheduled to host a Special Event on March 21, during which it would present its expectations for a new 4” iPhone, a new 9.7” iPad, new Apple Watch bands and maybe other surprises.

iPhone SE

This represents Apple's second attempt at coming up with a phone to serve the mid-range, luxury market. “Given our own research in China and a plethora of media reports, we believe the iPhone SE will provide Apple with an improved position in the midrange, luxury smartphone market,” analyst Brian White wrote.

He expects Apple to launch the iPhone SE with a number of the features found on the iPhone 6s, albeit at a lower price point and with a smaller, 4” screen. The iPhone 5c, which was launched in September 2013, had outdated features and a less refined look than the iPhone 5s, its price point was merely $100 lower.

Expectations

Apple should be able to improve its positioning with iPhone SE with a more attractive price point, refined look and updated features, including a 12mp rear camera, Touch ID, A9 chip and Apple Pay.

White expects Apple to launch this device in the range of $400-$500, versus $649 for the 16GB iPhone 6s, $549 for the 16GB iPhone 6 and $450 for the 16GB iPhone 5s. He added, “We believe a lower-priced iPhone could help Apple's expansion in India and in Tier 3-5 cities (80-90% of China's households) in China. We believe Apple will now be able to better tap into consumers that are just starting to enter the middle class (mostly coming from Asia) in developing countries.”