Canaccord: Get Ready for Big iPhone 6 Sales

| Apple Stock Watch

iPhone 5S sales may not be as strong as most analysts would like, but that's nothing to worry about, according to Canaccord Genuity's Michael Walkley, because the iPhone 6 is coming and everybody wants one.

Mr. Walkley said,

With our recent surveys indicating growing consumer awareness and channel willingness to pay more for new larger-screen iPhones, we still anticipate a very strong iPhone 6 upgrade cycle... We believe consumers slowed the pace of iPhone upgrade purchases during the iPhone 5 and 5S product cycles, and we believe the extended replacement rates combined with new larger-screen iPhones position Apple with its large installed base for record iPhone 6 sales.

Analyst says iPhone 6 to boost Apple's revenueApple is expected to launch larger display iPhone models this fall with sapphire glass surfaces, improved cameras, and longer battery life. So far, Apple hasn't confirmed any of the rumors surrounding the next iPhone version. Those larger screens are said to be 4.7-inches, up from the current 4-inch display, and possibly 5.5-inches, too.

That pent up demand will come at a price, at least for consumers. Mr. Walkley expects Apple will charge a premium for the larger screen iPhone, and people will be willing to pay.

Apple sold 35.2 million iPhones during its third fiscal quarter for 2014, up 13.3 percent compared to the same quarter last year, but not at the levels analysts were hoping for. That disparity comes from consumers holding out for the new model, creating a pent up demand that will likely break loose when the the new models ship.

Mr. Walkley lowered his 2014 annual revenue estimate to US$179.7 billion, and lowered his annual EPS to $6.26.

Mr. Walkley is maintaining his "Buy" rating and $112 target price for Apple's stock. Apple is currently trading at $96.56, down 0.63 (0.65%).

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Analysts are putting a lot of faith in the next iPhone, and that makes sense considering sales jump up when new models are introduced. 

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Let’s get serious about this

We know that the manufacturing cost will only be higher during the initial runs and in the end will more than likely be cheaper to produce than any other deviee so far as they will be manufactured by a huge machine.

Probably very little hands on other than for QC

So since the pricing is getting ridiculously expensive why not blow everyone else in this business off the charts by selling us these new phone inexpensively setting a trend to drop the bottom out of this market.
Apple could control the marked with this kind of marketing strategy not to mention the fact that the competitors build barely funtional, mechanical crap.

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