Consumers Are Primed and Ready for Apple, Inc.'s iPhone 6

Now all Apple needs to do is deliver.

Jun 24, 2014 at 8:30PM

Apple stock, Samsung stock

A recent poll shows strong demand for Apple's upcoming iPhone 6.

As Apple (NASDAQ:AAPL) gears up to launch its iPhone 6 lineup this fall, the tech giant appears set to enjoy at least one huge catalyst to reinvigorate its growth: the upgrade cycle.

At least, that's what a recent survey from analysts at RBC Capital Markets indicates. RBC recently polled over 4,000 consumers and found nearly half of those planning to upgrade their smartphones in the next three months are "inclined to purchase" an iPhone. By comparison, "just" 37% favored Samsung's (NASDAQOTH:SSNLF) Galaxy series devices.

What's more, an impressive 64% of Apple-leaning buyers say they'll opt for an iPhone 6 and 26% insisted they'd be willing to pay another $100 for an iPhone 6 with a larger, 5.5-inch display.

Of course, Apple wouldn't necessarily complain if a larger chunk of consumers decided to continue to buy its soon-to-be-older iPhone 5s and iPhone 5c models. That would, after all, still serve its end game of driving billions in revenue to its coffers in the form of digital app and media sales. But seeing such a high percentage of iPhone 6 adopters will be great for Apple's gross margins, which have already enjoyed an uptick in recent quarters thanks to buyers' acceptance of higher-than-expected iPhone 5c pricing late last year:

Apple stock, AAPL Gross Profit Margin (Quarterly) Chart

AAPL Gross Profit Margin (Quarterly) data. Source: YCharts.

Worse yet for Samsung, a full 35% of users who don't currently want to purchase an iPhone said they would do so if Apple offered one with a larger form factor.

Then again, we've already established Apple knows all too well the iPhone 6 needs a bigger screen. But as its widely anticipated debut nears, Apple investors should be excited to hear confirmation of this preference coming directly from the consumers on which they rely to drive their company's growth.

So what kind of growth should we expect? If RBC's supply chain checks prove accurate, Apple is gearing up for year-over-year unit growth of 15% to 20% for the December quarter. Considering Apple sold a then-record 51 million iPhones in its most recent fiscal first quarter ended Dec. 28, 2013, that means an expected range of 58.65 million to 61.2 million iPhones sold this time around -- even the low end of which would easily set a new all-time quarterly high mark for the folks in Cupertino.

It's important to note, however, that this is how many iPhone 6 devices Apple expects to sell in their debut quarter. Whether these big numbers actually pan out will depend greatly on just how impressive Apple's latest round of innovations turns out to be. But, really, it's hard not to be optimistic after Apple Senior VP Eddy Cue recently boasted of "the best product pipeline that I've seen in my 25 years at Apple." If that holds true, Apple stock should be set to continue to handsomely reward patient investors going forward.

Leaked: Apple's next smart device (warning: it may shock you)
Apple recently recruited a secret-development Dream Team to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out... and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, AND the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Steve Symington owns shares of Apple. The Motley Fool recommends and 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information