It seems everyone is upbeat on the iPhone SE. I could hardly blame them, it’s a pretty good product given the price point. Assuming demand is strong, Apple should be able to recover. Here’s the last note I’m going to review with regards to iPhone SE. Amit Daryanani from RBC Capital Markets seems in-line with other analyst commentary on iPhone SE:iPhone SE Revenue/EPS Impact. Based on our analysis, we estimate that the iPhone SE could drive $6.8B revenue and $0.28 EPS annually. Our analysis assumes 1) ~15M iPhone SE unit sales; 2) ~$450 ASP; 3) 40% gross margin; 4) Opex 10% of sales; 5) ~25.5% tax rate, and 6) ~5.4B shares outstanding.a He goes onto state that incremental units will offset lower margins:Perhaps the only surprise was pricing – iPhone SE starting at $399 (most expected ~$500) and unexpected price reduction on AppleWatch (now at $299 vs. prior $349). We think both products should help revenues as AAPL would benefit from price elasticity given the lower price points, the offset would be risk to gross-margins (especially given much of the SE hardware is comparable to iPhone 6s). Net/Net: AAPL stock moves with iPhone units and this announcement will drive upside to units, we think you could see ~15M unit uplift, with estimated blended ASP of $450 we think iPhone SE could drive $6.8B of sales (3% of total) and $0.28 EPS (3% of total). Of course, we have yet to see the consumer response from the iPhone SE, but if history has shown us anything, investors are quick to dismiss incrementally positive product launches. Hopefully, investors let their guards down low enough to be surprised by Apple’s second half earnings results.