A new analyst report suggests the iPhone 6 release date will bring a major influx of upgrades from older iPhones, playing a role in a new $700 per share target just ahead of a 7-to-1 AAPL stock split.
The latest iPhone 6 rumors point to two iPhone 6 models in 2014 with larger screens. We may see two iPhone 6 release dates, with a 4.7-inch model in September and a 5.5-inch iPhone 6 in November.
The new note to investors claims that with consumer interest in a bigger iPhone, a high number of users that own an iPhone 4, iPhone 4s or iPhone 5 and the number of users eligible for an upgrade will lead to significantly more iPhone sales this fiscal year.
Apple’s fiscal year ends on September 27th, and reports suggest Apple will announce and offer an iPhone 6 release date before the year ends in order to end the quarter with more iPhone sales.
UBS analyst Steven Milunovich uses data to predict that the iPhone 6 will drive more iPhone sales and in turn push Apple stock higher. Milunovich tells investors that AAPL should hit $700 in the next 12 months. This prediction arrives as Apple prepares for a 7-to-1 split that would essentially make this target $100 after the split.
Using data from YouGov.com, Milunovich notes that most iPhone owners are using a device that will be tow year’s old or older when the iPhone 6 release date rolls around. This is an interesting piece of data, but it does not factor in the surprisingly large amount of shoppers who buy the cheapest iPhone available, even if it is nearly three years old. For users that bought the iPhone 4s recently or the iPhone 5 well after release an upgrade date is likely far away.
One source tells Gotta Be Mobile that out of all the phones sold at a cellular retailer in May, 15% are the iPhone 5s and 10% are the iPhone 4s, suggesting that many shoppers are buying an old iPhone and locking into a contract for the next two years.
UBS shares some upgrade data as well, pointing to roughly 25% of users off contract or with a contract that expires in 5 months. This approaches 50% if you push it out to include the next 6-10 months as well. Combined the data points to a large number of potential iPhone 6 buyers coming off contract right as Apple is ready to offer a new Phone.
Unlike the iPhone 5s upgrade last year that apparently did not gain as much market share, according to this data, the iPhone 6 should offer a collection of new features and reasons for users to upgrade. A larger screen alone is a reason for many users to upgrade and it may help convince some Android users to upgrade to the iPhone 6. Other survey data suggests consumers are already waiting for the iPhone 6 as the number of consumers planning to buy an iPhone in the next month dropped significantly for the summer.
Here’s a look at what investors should know about the latest iPhone 6 rumors. For more, checkout Gotta Be Mobile’s detailed look at the iPhone 6 release date, features and other rumors.
- iPhone 6 Screen Size – 4.7-inch iPhone and a 5.5-inch iPhone
- iPhone 6 Release Date – September for the 4.7-inch, late 2014 for a 5.5-inch iPhone.
- iPhone 6 Design – A new thinner iPhone 6 design with more metal, power button on the right.
- iPhone 6 Specs – Apple A8 processor, 1GB RAM, 8MP Camera, Touch ID.
- iPhone 6 Price – Possible price jump of $50 to $100, Expect a higher price for a 5.5-inch iPhone.
Apple (AAPL) is at $639 this morning, up from an open of $636.