Apple’s iPhone 6 Lineup Should Be Great

Some new details on Apple's next generation iPhone 6 lineup suggests that it should be great for Apple.

Apr 11, 2014 at 9:14PM

Everybody wants to know about the next Apple (NASDAQ:AAPL) iPhone. While smartphones have quickly been trending toward commodity status, Apple has historically been very good at commanding the lion's share of the profits in these types of markets, even if its market share doesn't necessarily tell an equally encouraging story. However, with the imminent launch of the next generation iPhones, it looks as though Apple could gain share and grow profitability. 

KGI Securities says two iPhones coming this year
According to Ming Chi Kuo from KGI Securities (this individual has a great track record in predicting future Apple product details and launch timeframes), there are two next generation high-end iPhones hitting the market this year -- a 4.7" mainstream device and a 5.5" higher-end iPhone "phablet." Now, these screen sizes have been rumored for quite some time, but thanks to Kuo, we now have some pretty interesting -- albeit not entirely unexpected -- details to work with.

The iPhone 6 4.7" -- an interesting balancing act
According to Kuo, the iPhone 6 4.7" -- the mainstream high-volume successor to the iPhone 5s -- should sport the following:

  • 4.7", 1334x750 display
  • 1GB of RAM
  • A8 processor
  • Touch ID
  • NFC
  • Narrower bezel than iPhone 5s
  • 6.5-7.0 millimeters thick

These details aren't entirely unexpected given that it's a fairly natural progression/enhancement of the prior generation iPhone. An interesting detail, though, is that Kuo believes that this phone will sport only 1GB of RAM, rather than an upgrade to 2GB. Of course, iOS is extremely efficient, which has allowed current generation iPhones to provide a smooth experience with just 1GB of RAM.

Shameless Small

The wildly successful iPhone 5s. Source: Apple. 

That said, Anandtech noted that the iPhone 5s and iPad Air ran into a few nagging, but not deal-breaking, issues due to insufficient system memory, so a move to 2GB still seems possible barring a dramatic enhancement to iOS 8's memory management system. Another 1GB of RAM would add cost, though, so if Apple is able to R&D its way out of a significant bump to the cost of goods sold, then itwill likely do so.

The iPhone 6 5.5" – the big guns
Samsung's (NASDAQOTH:SSNLF) Galaxy Note 3 is a big, immensely popular phone that sports a beastly 5.7" display. Indeed, much to Samsung's credit, the large-screened Galaxy Note series has really been a commercial success, as customers seek to do even more "PC-like" functionality on their phones. Apple, likely realizing the market share gain opportunity in releasing a larger iPhone, is apparently set to launch a 5.5" iPhone in Q4, with mostly the same specifications, the main difference being a 1920x1080 5.5" screen, according to Kuo.

Samsung Galaxy Note

Samsung's Galaxy Note 3 is a great example of a "phablet." Source: Samsung.

This device is likely to be priced at $299 on-contract for the base 16GB model, with $100 increases thereafter for each storage tier up to 64GB. According to Kuo, this will be a fairly limited volume model in 2014, and further suggests that only the 64GB model will sport a sapphire-cover on the display. It'll be interesting to see what the price of such a device would be both on-contract and unlocked.

Foolish bottom line
It's going to be a little rough sailing for Apple until the new products hit the market in full force, but when they do, Apple could supercharge revenue growth and return to net income growth. Of course, nothing is guaranteed, but if there's any company that knows what its customers want and is able to craft products to drive insatiable demand at a good cost structure, it's Apple.

The iPhone 6 may be big, but this could be far bigger
Apple growing its existing product categories is nice, but just wait until you see this. Apple's engineers are hard at work at getting this device just right, and an ABI Research report predicts 485 million of them could be sold during the next decade. But why wait? You can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the details. 

Ashraf Eassa has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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