UBS: iPhone SE’s success will result in a drop in the iPhone average selling price

In a note to clients — as reported by AppleInsider — UBS Analyst Steven Milunovich says a 500-person study by the research group indicates that 16% of U.S. iPhone sales in the June quarter were of the low-end iPhone SE.

Approximately 9% of domestic iPhone sales were of the 64GB model, and 7% were of the 16GB version. Milunovich believes the “unexpected” success of the SE will have a detrimental effect on Apple's bottom line. The analyst’s new estimates call for the iPhone average selling price to drop to $637 — a number he believes is well below Wall Street consensus of about $660.

The new phone was unable to take away the iPhone 5’s share, the model it most closely resembled. Localytics says this suggests that small-screen lovers haven’t yet been convinced to upgrade from their 5 models to the new iPhone SE, notes the mobile engagement platform.