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A report released by JPMorgan Chase on Monday showed that Apple's upcoming cheap 5G iPhone SE will speed up its sales cycle and help drive its market valuation well above US$3 trillion.

The bank reiterated Apple's first choice for entering 2022 and raised its target price to $210, a 17% increase from Friday's closing price. A rise to $210 will make Apple's market value soar to the $3 trillion field, and the iPhone maker is less than 1% from reaching this milestone for the first time on Monday.

Apple's stock price needs to reach $182.85 to reach a market value of $3 trillion. In Monday morning, the stock price was quoted at US$181.72.

"We believe that as the iPhone SE with 5G capabilities will be launched in early 2022, there will still be more upgrades in iPhone SE shipments, which may promote the installation base of the old iPhone and the upgrade of the installed switches. Medium to low The foundation of end-of-the-line Android phones," JPMorgan Chase explained.

The bank estimates that more than 300 million iPhone users have overdue upgrades, and more than 1.4 billion mid-to-low-end Android phones are in use. 

JPMorgan Chase said that the expected launch of a 5G-capable iPhone under US$500 in 2022 will raise investors’ expectations for Apple’s 2022 product lineup, as many people expect a weaker product cycle earlier this year. The bank believes that Apple may sell more than 30 million iPhone SEs in 2022, thereby making its total sales forecast for 2022 reaching 250 million.

Apple's original iPhone SE was launched in the spring of 2016, but infrequent model updates caused analysts to pay less attention to the possibility of launching upgraded phones more frequently. Apple released an upgraded version of iPhone SE in 2020, which does not have 5G capabilities.

JPMorgan Chase said: "We expect Apple to upgrade the iPhone SE with 5G connectivity in 1H22 and make it a frequent annual upgrade in the future, further promoting its already demonstrated strategy that covers a wider range of price points."