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iPhone 6 With 4.7 Inch Larger Screen Will Be A Hit According To Analysts as it Upgrades Apple (AAPL) to “Outperform” With $635 Price Target

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iPhone 6 With 4.7 Inch Larger Screen Will Be A Hit According To Analysts as it Upgrades Apple (AAPL) to “Outperform” With $635 Price Target

iPhone 6

A lot of people are definitely excited about the coming of the iPhone 6. The excitement however goes beyond the gadget consumer.

Pacific Crest, a leading and premier investment bank in the technology industry, has upgraded Apple Inc. (AAPL) from ?sector perform? to ?outperform?. The bank’s senior research analyst who covers electronics and digital media, Andy Hargreaves, shared that Pacific Crest has given Apple a price target of US$ 635.

The news surprised a number of analysts as Apple has rarely been given an upgrade, and especially not in recent times.

However, the coming of the iPhone 6 seems to convince many investment groups that this product will boost Apple’s financial situation in the coming months.

And why is that?

AAPLdata

Hargreaves explains that a release of the iPhone 6 (reportedly with a 4.7 inch display) will happen in the fall. He goes on saying that it is assumed Apple will sell the iPhone 6 for US$ 299 on a contract plan and this US$ 100 dollar premium over the iPhone 5 price will increase Apple’s sales and profits tremendously.

He adds that many iPhone users, including those who are still sticking with their iPhone 4 and 4s, as well as those who have the iPhone 5s and 5c, will eagerly upgrade to the iPhone 6 because of its big display.

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Hargreaves also thinks that even if the price may be higher, it will not affect the decision of the demographic target as Apple gadget users are ?relatively rich?. He even points out that the failure of the iPhone 5s and 5c is due to the fact that consumers want more than the usual and are willing to wait and spend a bit more money for a better device.

His analysis is based on the assumption that Apple can charge US$ 100 Dollars more for a device that not only is newer but has a bigger screen. He points to the success of Samsung and other smartphone makers who have garnered a large smartphone following because of its larger screens.

Hargreaves also shares that ? While many observers have chided Apple for a ‘lack of innovation’ over the last two years, we do not expect a linear path to commercially successful new product categories…...Instead, Apple is likely to choose its opportunities and timing extraordinarily carefully and release new products or services only when it feels it has the best chance to succeed, which does not mean it is not innovative, just that it is not dumb.?

 

 

Photo Source: http://www.pacific-crest.com/managers/andy-hargreaves-cfa/ ; https://www.facebook.com/Iphone6.xD

Date: Pacific Crest Securities : http://www.pacific-crest.com/

 

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