Apple's iPhone 6 Is Coming: Here's What You Should Know

Apple will likely be changing the form-factor of its iPhone when it launches the latest version this year. Here's what investors can expect from the launch.

May 19, 2014 at 3:05PM

Going into an iPhone launch there's never much doubt about whether Apple's (NASDAQ:AAPL) latest addition to the key lineup will sell better than its predecessor. Where the confusion usually lies is in how much better the newest model will do than the one before it. While the 5s and 5c have performed about in line with analyst expectations, the 4s outperformed even most of the bullish projections. What can Apple investors expect from the iPhone 6 this year?

Another blowout?
For the most part, there are big expectations for Apple's iPhone 6.

The hyperactive rumor mill, as noted by MacRumors, expects the key differentiator for the next-generation iPhone to be a larger display screen. Fortunately, there seems to be a considerable market for smartphones with displays larger than 4 inches.

While early rumors suggested Apple would launch both a 4.7-inch and 5.7-inch iPhone this fall, the consensus agreement now is that the 5.7-inch iPhone has been pushed back toward the end of the year. But a 4.7-inch display would add almost three quarters of an inch to the current diagonal measure of the iPhone 5s, enough to push Apple into that proven market for larger displays.


MacRumors renderings, by Ferry Passchier, of the potential 4.7-inch and 5.7-inch sixth-generation iPhone lineup. Photo used with permission.

Just how good does the market for larger smartphones look? A third of all smartphones sold globally in the first quarter of 2014 had screen sizes larger than 5 inches, according to research firm Canalys. The market hit 90 million units in the quarter, making it the fastest-growing segment of smartphones when measured by display size. Comparatively, Apple sold 43.7 million iPhones during the quarter.

At this point, it's irrefutable: The market for larger smartphone displays looks lucrative. Apple seems to have plainly acknowledged this fact. Recent documents that surfaced in court filings in an Apple-Samsung case showed a slide in a slide show entitled, "Consumers want what we don't have." The slide detailed the growing adoption of smartphones with displays larger than 4 inches.

Recent supply-chain checks by longtime Apple analyst Katy Huberty at Morgan Stanley also supported speculation that the consumer demand for Apple's iPhone 6 will be robust. Based on her recent trip to the Far East, Huberty believes suppliers are prepping for iPhone 6 sales to be 20% higher than 5s sales.

A rosy outlook for iPhone 6 is great news for the company's investors. With the iPhone accounting for 57% of Apple's total revenue in its most recent quarter, a jump in sales for this device will be great for the business -- especially considering the iPhone is Apple's most profitable product segment.

So what should investors expect from the iPhone 6 launch? Big numbers. In the months following the fall launch, Apple certainly could see year-over-year growth in iPhone sales in excess of 15%.

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Daniel Sparks owns shares of Apple. 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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