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Apple ‘s ( AAPL ) new iPhone SE probably has a gross profit margin of about 35% for the entry-level model, which is well below the mid-40% margins enjoyed by the rest of the iPhone family, RBC Capital Markets said in a research report Thursday. But the new phone, which starts at $399, will still give a lift to revenue and profit, RBC analyst Amit Daryanani said in the report. The iPhone SE could provide $6.8 billion in revenue and 23 cents in earnings per share this calendar year, assuming Apple sells an incremental 15 million units, Daryanani said. He reiterated his outperform rating on Apple stock, with a price target of 130. Apple was down a fraction, below 109, in morning trading on the stock market today . Based on teardown reports, the 16-gigabyte model iPhone SE has a bill of materials cost of about $260, Daryanani said. The 4-inch iPhone uses many of the same components found in the larger-screen, higher-priced iPhone 6 and 6S series phones. The iPhone SE likely benefited from cheaper components that were the result of Apple suppliers left with excess inventory after the iPhone 6S underperformed, he said. Chipmakers Qualcomm ( QCOM ) and Qorvo ( QRVO ) topped content in the iPhone SE, but Skyworks Solutions ( SWKS ) and Texas Instruments ( TXN ) gained new chips in the refreshed 4-inch smartphone, a Chipworks teardown found . The iPhone SE went on sale Thursday. It was a low-key product launch for Apple, with few stores seeing lines forming outside, Piper Jaffray analyst Gene Munster said in a report Thursday. Also, a check of 100 Apple stores in the U.S. found 90% availability for the iPhone SE, he said. “We view both the lack of lines and the high level of product availability as in line with expectations, reinforcing our view that the SE will be largely incremental to the model in replacing the low-end iPhone 5S,” Munster said. RELATED: Middle-Aged Apple Might Get A Sports Car, New Girlfriend . Scalper1 News
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