Apple Inc.’s AAPL newly launched third-generation iPhone SE may help the tech giant gain market share in important markets like China and India, according to Counterpoint Research.
What Happened: The budget iPhone’s improved chipset and 5G connectivity may appeal to customers in the two Asian markets, Counterpoint Research analyst Matthew Orf said in a blog post.
The combination of 5G connectivity and Apple’s latest silicon at an affordable price may convince low-to-mid range Android users to switch to the iOs system, according to Orf.
The analyst noted that the U.S., Japan and Western Europe will likely be the best-performing markets for the new iPhone SE due to their strong iOS installed base and the strong performance of previous iPhone SE devices.
See Also: Here's Why Apple Analysts Are Bullish Over 'Peek Performance' Event
Why It Matters: Apple unveiled the third-generation iPhone SE, priced at $429 and powered by the A15 Bionic chip, along with other products during the “Peek Performance” launch event on Tuesday.
The new 5G-enabled iPhone is expected to appeal to price-sensitive customers in emerging markets where some of Apple’s iPhones are seen as expensive.
Bloomberg columnist Mark Gurman said in February that an iPhone priced at $200 can have a good offtake in regions like Africa, South America and parts of Asia, which are currently “Android strongholds.”
Apple currently has less than 5% market share in India.
Price Action: Apple shares closed 3.5% higher in Wednesday’s regular trading session at $162.95, but lost 0.4% in the after-hours session to $162.25.
Read Next: Amazon Announces 20-For-1 Stock Split, Share Buyback: Here Are The Details
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