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Not all analysts are confident in the success of the iPhone SE

On Monday night Apple will introduce iPhone must provide SE – new compact smartphone with 4-inch display. The device will retain the screen size of the iPhone 5, introduced in 2012, but you will get improved “stuffing”, including a top A9 processor and 12-megapixel camera.

The release of the new iPhone comes at an unusual time. The first smartphone was introduced in January 2007, subsequently, new models appeared every June until the iPhone 4S in 2011, when the release of new products migrated in the fall. According to Above Avalon analyst Neil Sibert, a departure from Apple’s tradition is “a recognition that the trends of iPhone sales are now somewhat different from those expected by management of the Corporation”.

IPhone SE the cost could be $400-500, which is less than the price on other models, but much higher prices to competitors — so, the flagship smartphone Xiaomi Mi5 is on sale for $260. “A somewhat more aggressive pricing can open a lot of opportunities,” RNS quoted Carolina Milanesi from Kantar.

According to Kantar, only a third of the buyers of phones in the U.S. are satisfied with the screen less than 5 inches, while larger screens draw more than half of buyers. Ben from Creative Strategies Bajarin assesses the potential demand for four-inch model 15% of the market.

The latest attempt by Apple to succeed in the environment is more price sensitive buyers took place in 2013 when it released the iPhone 5c in the plastic housing. Initially the new model was not very popular, but in the spring its sales grew.

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Analysts at RBC Capital Markets believe that the release of the new model Apple wants to shorten the refresh cycle of smartphones, which has grown over the last couple of years, from 23 to 27 months. Observers predict that the iPhone can make SE this year, 15-20 million units (total sales forecast of the iPhone in 2016, more than 220 million).

A return to four-inch casing will allow Apple to reduce the cost of the new device and to spur sales, I believe in KGI Securities. More affordable device will allow the company not only to motivate users to update devices, but also strengthen the position of producers in the rapidly growing markets of Asia and Latin America, where the company still loses more budget competitors. There is a huge potential and India, where Apple sales have been growing rapidly: in 2015, 76% (to 1.7 million smartphones).

Sale “new old” device could bring Apple an additional $5.5 billion in 2016 fiscal year and additional sales of up to $ 10 million of the devices, experts say RBC Capital Markets. According to them, SE with iPhone, the company will bet on India, and the second category of potential buyers of the new model will be the current owners of legacy devices iPhone 5c and iPhone 5s.

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