Are Investors Underestimating Apple, Inc.'s iPhone 6?

Apple (NASDAQ: AAPL  ) is a product company. At the end of the day, the success of new products will make or break the company. Fortunately, Apple's biggest product business, the iPhone, looks poised for a successful year when it launches later in 2015. But is a blockbuster iPhone 6 launch -- one more successful than even the 5s launch -- priced into the stock today? Fool technology specialist Daniel Sparks doesn't think so.

In the video below, Daniel examines a recent note to investors from Morgan Stanley's longtime Apple analyst Katy Huberty based on her recent visit to Far East Apple suppliers. Based on her conversation with suppliers, Huberty believes suppliers are prepping for iPhone 6 sales to be 20%higher than 5s sales.

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  • Report this Comment On May 18, 2014, at 12:04 PM, iphonerulez wrote:

    Why are sales of the iPhone 6 priced into Apple today? Does that even make any sense at all? Apple certainly has a consensus price target higher than what it currently is, so there must be some upside being indicated. I honestly don't understand how there can be some set value for Apple that's lower than most tech companies. Apple's P/E isn't unusually high for a tech company. I would think iPhone 6 sales alone would give Apple's revenue quite a pop. It is rumored iPhone 6 will be launched in September 2014 not 2015.

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Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

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