Analyst: a 4-inch ‘iPhone 5se’ will drive $5.5 billion in sales for Apple

In a note to clients — as reported by AppleInsider — RBC Capital Markets analyst Amit Daryanani says the upcoming 4-inch “iPhone 5se” will add 10 million units to Apple's total handset sales this year, resulting in an additional $5.5 billion for the company in fiscal 2016. (Keep in mind that Apple has yet to announce such a device.)

This mockup of an expanded iPhone line-up is courtesy of devicegeek.blog.

This mockup of an expanded iPhone line-up is courtesy of devicegeek.blog.

He predicts that a 4-inch iPhone will sell more than 10 million units, but with some cannibalization of larger models, the net effect will be 10 million additional sales. Daryanani’s forecast calls for the average selling price of the 4-inch iPhone to be $550, adding 23 cents to Apple's earnings per share, or about 2 percent to its fiscal year 2016 totals.

The rumor mill says that the iPhone 5se will be announced in mid-March, along with the iPad Air 3, new bands and software for the Apple Watch, and perhaps a hardware upgrade of the smartwatch itself.