Here's Why Apple Should Launch iPhone 6 Early

With rumors of an iPhone 6 launch pull-in, here's why such a move would make sense.

May 10, 2014 at 8:00PM

In its most recent earnings report, Apple (NASDAQ:AAPL) reported blow-out numbers relative to its own guidance and the most optimistic of sell-side estimates. As a result, Apple's shares have been on an absolutely wonderful run. While it's clear that the iPhone 5s had a lot more juice in it than what many of us had believed even in light of the trend toward larger phones, Apple would still benefit immensely from launching the iPhone 6 early, as it has been rumored that it will.

Strike while the iron is hot
The iPhone 5s and even the 5c have enjoyed tremendous momentum since their launches last September. Apple's iOS 7 has been well received, and touch ID has proved to be a key differentiating feature against the various Android devices (even against ones with fingerprint sensors -- Apple's implementation still appears to be the best on the market). However, as the various Android vendors start implementing some of these features, Apple is going to want something new to drum up excitement -- the iPhone 6.

While we don't know a whole lot about the iPhone 6 officially, we can expect that it'll be bigger (4.7 inches and maybe a 5.5-inch model), faster, thinner, and even better than the iPhone 5s. In fact, the 4.7-inch size is likely to prove to be a nearly optimal compromise for those who still want one-handed operation but at the same time want more screen real estate. And, of course, Apple is sure to soup-up iOS 8 to take full advantage of what the new iPhone hardware will enable.

All of this adds up to a product that will be able to keep the momentum going.

Pouring cold water on the next-generation Android phones
While Apple has a clear software, platform, and ecosystem advantage, there is no doubt that there are plenty of customers who would love to go back to iOS if they could get a larger phone. Not only would Apple get the benefit of the current loyal Apple customers upgrading to the latest-and-greatest sooner rather than later, but a slightly pulled in iPhone 6 launch would keep those customers -- the ones who would love to go Apple but can't live without a larger device -- from going with an Android device (or -- gasp! -- a Windows Phone) this round.

Will there be some Android users who prefer Android? Of course. Will there be those who absolutely need an OLED display, crazy high pixels per inch, or a 20-megapixel camera? Of course. However, the launch of the 4.7-inch iPhone should grab a pretty solid chunk of Android users, and maybe Apple will try to go after the "spec-crazy" crowd with an even more expensive 5.5-inch variant.

Apple doesn't need all of the high-end smartphone business, but it will benefit immensely from keeping as much of it out the hands of its competitors as possible. A larger-screen iPhone will probably do that, and the sooner it can, the better.

Foolish bottom line
There is no smartphone vendor with the brand cachet and the software ecosystem "stickiness" that Apple has. As the company rolls out products that appeal to an even broader swath of the high end market, it should capture more share and ultimately continue growing profits at a respectable rate. Pulling in the iPhone 6 for an August launch, as suggested by some reports, would probably be a smart move, even if in the long-run being a month early isn't a make-or-break proposition.

The biggest thing to come out of Silicon Valley in years
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Ashraf Eassa has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. 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.

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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