Kulbinder Gharcha from Credit Suisse has been talking extensively about Apple’s potential entry into the mid-tier and how it may affect company fundamentals. Anyhow, he finally got his Apple wish, and went into the gory details about how it will positively affect shareholders. Source: Credit Suisse Here’s why Kulbinder revised his estimates higher:iPhone SE driving TAM expansion, unit growth, & earnings accretion? As widely expected Apple released a 4-inch iPhone SE. We believe with the key new features and an attractive price point of $399, this could prove to be a solid move for the iPhone business for three reasons. First, the device compares favorably with competitive products in $300-$500 ASP smartphone segment. Second, we see it as additive to units, projecting ~18mn/30mn units for iPhone SE, in CY16/17. Overall, I can see why Kulbinder revised his estimates on iPhone even higher. The incremental demand from lower pricing should drive some incremental shipment demand, which the analyst pegs at 18 million and 30 million in FY’16 and FY’17. Now, until I do my own elasticity study on iPhone, I’m not sure how pricing will affect demand fundamentals. But, the new product does pave enough momentum for some to get more aggressive at these levels.