The New iPhone is Coming ... (And So is Another Apple Game Changer)
Mark your calendars, the next iPhone is coming out, and Apple is set to reveal its newest phone at a September 9th event.
The phone is no longer a secret, there have been plenty of leaks that reveal what Apple is ready to unveil to the world in a few weeks. Just look at this picture recently captured inside a Chinese factory and posted to Chinese social network Weibo.
Yup, that’s an iPhone 6 in production.
Yet, what the iPhone looks like is just the beginning of the story. Consider that there are now three times as many smartphones sold as PCs a year.
Which is to say, the launch of the iPhone 6 is about much more than one company, it affects thousands of other technology companies as well. So, let’s take a look one-by-one at some of the most important storylines surrounding the phone’s launch. Such as:
- When will the phone launch, and how big of a launch will it be?
- What new features will the phone include?
- How will the phone’s launch affect Apple’s stock?
- What suppliers could benefit from the phone’s release?
When will the phone launch, and how big of a launch will it be?
Simply put, the iPhone 6 could be Apple’s most successful launch ever. In fact, I predict it’ll be the largest technology product launch of any kind by a comfortable margin.
First off, let’s look at the opening weekend sales of past iPhone launches. The trend is pretty obvious, and with this being a hotly anticipated launch, Apple should once again set records.
Yet, while the media will obsess over opening weekend sales, it’s just a small part of the sales story. Remember, Apple can only build so many iPhones in a short time frame. What’s more interesting is how many the company could sell across a quarter.
According to The Wall Street Journal, which has been a reliable source of iPhone leaks, the company is planning on producing 70-80 million iPhones 6 units by the end of the year. For perspective, in the same time frame last year they produced about 50 million to 60 million iPhone 5S and 5C phones.
That’s about a 36% jump from the prior year. Which, is remarkable for a company Apple’s size.
As to when the phone will be launched, don’t be fooled by anyone claiming to have the answer, even Apple hasn’t decided. Analyzing past launches, the most likely date is September 19th, though media reports have said the phone could hit stores as late as October 14th.
What new features will the phone include?
Let’s just get the most important feature out of the way: Yes, it will have a bigger screen.
The main iPhone 6 model will have a 4.7” screen (compared to the iPhone 5S’ 4” screen). That might not sound like much, but it actually leads to 38% more screen space. You can really see the difference in the size comparison to the right.
Apple is also considering a 5.5” phone, which begins bordering into “phablet” territory. However, it’s reported that problems producing the 5.5” phone might delay its launch.
Finally, here are some other features to watch out for.
- Thinner: Apple is planning on making the phone between 9% and 16% thinner and will make its overall appearance far more “rounded.” On the right you’ll see more supply chain leaks that show the new iPhone’s appearance.
- Unbreakable: Sapphire is the second hardest material – trailing only diamonds – and Apple has made huge investments in a company that produces sapphire. Whether or not Apple ends up using Sapphire on the iPhone’s scree, leaked iPhone 6 screens have been practically unbreakable.
- New iOS: The iPhone 6 will come with the newest version of iOS which offers huge updates. Among the new features in iOS is a Photo Cloud so photos no longer need to be stored on your phone and an App for controlling devices across your home such as your lights or garage door.
- Mobile Payments: Leaked iPhone 6 schematics show it coming with an “NFC” chip. That’s meaningful, because NFC is a central technology for many next generation payment systems. Could the iPhone 6 be a phone that finally replaces your wallet?
How will the phone launch affect Apple’s stock?
If you own Apple’s stock – or are just watching from the sidelines – you’ve no doubt been impressed by its recent performance. The company recently hit fresh all-time highs, and is up over 40% across the past year (a pace well ahead of the market).
Apple’s surge is heavily tied to optimism around the iPhone 6. It’s set to be the most dramatic redesign of the iPhone since 2010, and it’ll give users the larger screen that many have been waiting for. In addition, recent struggles from Apple’s main competitor Samsung point to Apple stealing market share in the lucrative market for high-end smartphones.
So, if you’re an Apple investor, the rise or fall of Apple’s stock in coming months will be largely dictated by whether the iPhone 6 is exceeding expectations. With all news around the iPhone 6 so far pointing toward it exceeding expectations, that’s probably welcome news to Apple investors.
What suppliers could benefit from the phone’s release?
Finally, let’s looked at an area that many investors unwisely ignore around any iPhone launch: other companies that stand to benefit from its success.
Suppliers are kind of the “under the radar” plays around any Apple launch, but they’re hugely impacted by Apple products. Think about everything in your life that’s filled with computer chips… For example, even an average car has over 100 computer chips in it!
Now, consider that Apple will spend more than $25 billion on chips this year, the company is rapidly approaching buying 10% of all chip sales across the world. With chips in everything nowadays, that’s incredibly impressive. Recently, some companies whose chips are inside Apple’s products have seen quite a bit of success; you can find a couple examples to the right.
One big name to watch with the iPhone’s launch would be NXP Semiconductor (NXPI). If the iPhone 6 does come with NFC (which, is the technology enabling mobile payments in the phone), NXP is the odds-on favorite to supply Apple with NFC chips.
Yet, the wisest move for investors is actually to look beyond the iPhone 6.
That might sound crazy, after all, the iPhone 6 will be the biggest technology product launch ever. However, we already know pretty much exactly who’ll be supplying different chips that go inside the phone.
The more intriguing play is around Apple’s upcoming iWatch. Apple won’t sell as many iWatches as it does iPhones, but that’s not a concern… It’s an opportunity! That’s because inside leaks are pointing to the iWatch using 10 sensors specially built to make the device a game-changer.
With Apple’s past groundbreaking products (the iPhone and iPad) creating huge booms in both smartphones and tablets, you can imagine how lucrative it’d be to find companies building these specialized sensors before the iWatch starts its own revolution. That could be that’s not looking to jump a mere 20% or 30%, but has the ability to double or triple once the iWatch hits.
If you're interested in looking beyond the iPhone 6 and toward an opportunity few early investors have caught on to, our analyst team has built a report where you can discover their favorite iWatch play. Remember, there is just a limited window of opportunity around this idea before it's in the spotlight, so I urge you to get instant access to this idea today!
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