Can Apple Expect Big Profits from Bigger iPhone 6?
One analyst is predicting that Apple can anticipate big things from the iPhone 6—but may be disappointed in sales of the iPad this year.
Those Wall Street analysts aren’t always right, but do have a pretty good track record when they get their information from the companies that manufacture the parts for mobile devices. That’s why this prediction from Katy Huberty caught our attention. The Morgan Stanley analyst has been talking to suppliers from around the world who are making parts for the next gen iPhone and had some interesting insights on what to expect from the newest Apple smartphone.
In a note to investors on Monday, Huberty delivered a sunny outlook for the iPhone 6. Industry component suppliers report no major bottlenecks, which means Apple should have no trouble keeping up with the demand for new iPhones, unlike in the past when consumer orders could take weeks to fill. This could make for a 20% increase in sales over those of the iPhone 5s, which was launched in September 2013.
It’s practically certain that the next gen iPhone will have a 4.7” screen and an improved camera in order to compete with the wave of Android big screen smartphones that have flooded the market over the last couple of years, especially those from arch rival Samsung. These bigger iPhones will also come with a bigger price tag—$20-$30 more.
Huberty also sees less than positive news for the tablet market in general and the iPad in particular. Sales of tablets have flattened out and can be expected to decline in 2014 and 2015, mostly due to lack of innovation.
So the iPhone 6 looks like a winner for Apple, and after the poor performance of the current crop of iPhones, they could use one.