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IPhone SE Helping To Moderate iPhone Unit Sales Decline, Analyst Says

Apple is maintaining its “strong share” of the premium smartphone market, although analyst firm Canaccord Genuity expects negative year-over year iPhone sales for the rest of the fiscal year, said analyst Michael Walkley in a research note Thursday. The iPhone…

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6 and iPhone 6s have enabled Apple “to materially increase its share” of the premium smartphone market via Android switchers, said Walkley. Canaccord estimated the installed base of iPhone users grew 26 percent last year from 402 million to 506 million “much faster” than the company's growth estimates for the overall smartphone market. Overall, connected Apple devices now exceed a billion users, Walkley said, and the “impressive installed base” is expected to drive strong future iPhone replacement sales and earnings. Canaccord maintained a "buy” rating on Apple, saying the iPhone SE will help moderate the iPhone unit sales decline. Walkley predicts a “reacceleration of replacement sales,” led by the upcoming iPhone 7 that's expected to drive strong iPhone sales during FY 2017. Total iPhone unit sales are projected to grow from 216 million in FY 2016 to 239 million in FY 2017, he said.