Apple iPhone SE Boosts Q2, But Unlikely To Cannibalize 5G Sales – Report

During the second quarter of 2020, US smartphone sell-through fell 25% year-over-year, according to Counterpoint Research’s preliminary US Smartphone Channel Share Tracker. However Apple (AAPL) had reason to rejoice as Apple volumes grew through the quarter and were especially helped by iPhone SE volumes.

“The device has been successful and selling above expectations in both postpaid and prepaid channels,” said Jeff Fieldhack, Counterpoint’s North American Research Director.

Since the iPhone SE launched at just $399, carrier stores and national retail have been re-opening, with some channels offering large promotions to draw shoppers back to stores. According to Counterpoint, this was especially true with Walmart, Metro by T-Mobile and Boost.

Encouragingly, the research showed that the iPhone SE boost should not deter from the upcoming 5G rollout. “Our checks show that iPhone SE sales are unlikely to be cannibalizing fall 5G iPhone sales. iPhone SE buyers are more pragmatic about price, less concerned with 5G, and the smaller display is not considered a hindrance” Fieldhack stated.

At the same time, over 26% of buyers have switched from Android: “Over 30% of iPhone SE buyers came from using an iPhone 6S or older handset—handsets four years old or older. Over 26% of iPhone SE users moved over from an Android device, which is higher than normal Android to iOS switching” the Research Director said.

Counterpoint Research also recently revealed that global online music streaming subscriptions spiked 35% YoY in Q1 2020 to reach 394 million subscriptions, driven by increased usage of OTT platforms as people stayed at home amid the COVID-19 outbreak.

And while Spotify (SPOT) continued to lead the charts for Q1 2020 with a market share of 30% in revenue terms- Apple Music followed with 25% revenue share and 21% subscription share.

Shares in Apple are up 34% year-to-date, and the stock continues to score a bullish Strong Buy Street consensus. However the $368 average analyst price target now indicates 4% downside potential from current levels. (See Apple stock analysis on TipRanks).

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