Apple Inc. (AAPL): New iPhone 6 Could Send The Stock Up 20%
Dan Haase-Dubosc: The chatter on tech blogs has heated up on reports of a significantly larger screen size for the upcoming iPhone 6 launch. The smart phone is slated to be released this fall and industry insiders say the screen size will grow by 20% or more.
This has led Wall Street analysts to project that Apple Inc. (NASDAQ:AAPL) will enjoy an earnings growth of 10-15% in addition to a marked increase in share price in 2014.
As you can see in the chart below, past release announcements have impacted share price dramatically. The original iPhone, as well as the 4S (the model that first introduced Siri) both immediately propelled Apple stock upward.
Other iPhone offerings (3G, 3GS, 4) that only incrementally upgraded existing hardware have done nothing to increase Apple’s share price. But the larger screen size (rumored to be anywhere from 4.7 inches to 5.5 inches) for the iPhone 6 is a very big deal.
The current iPhone’s 4 inch screen is dwarfed by smart phone competitors including Samsung and HTC. Over the past few years many past Apple acolytes have jettisoned their iPhones for the larger screens of its Android competition.
Apple is now primed to steal these users back. And current iPhone users, now for the first time in years, have a tantalizing reason to upgrade to the new model.
iPhones are expected to bring in 54% of total sales for Apple this year.