A new report from CNBC suggests that the iPhone SE is going to be a huge hit. According to preliminary numbers out of China, CNBC learned that pre-orders of Apple’s upcoming 4-inch iPhone have already surpassed 3.4 million. All in all, that’s rather impressive for a device whose defining feature is its smaller screen size.

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If pre-order figures from China are any indication, the iPhone SE could very well be Apple’s surprise hit of the season. What’s more, it could prove to be a strategic play to provide a much-needed bump in iPhone sales ahead of the highly-anticipated iPhone 7 release. As we’ve mentioned previously, 4-inch iPhone models (iPhone 5s, 5c, 5) account for 32.54% of all iPhones in active use. As a result, the pool of iPhone users on the cusp of upgrading is immense.

While the iPhone SE is obviously targeted for users who prefer a smaller form factor, the relatively cheap pricepoint Apple attached to it will also make the device compelling in emerging markets like Brazil and India. This is extremely important to Apple because emerging markets represent rare pockets for smartphone growth.

As for how iPhone SE sales will stack up over the next few months, analyst Amit Daryanani of RBC Capital Markets recently issued a research note indicating that sales may reach 15 million units before 2017.

The full CNBC report can be viewed below.

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