3 Signs Apple, Inc. Expects the iPhone 6 to Be a Record Breaker

Based on some recent reports, Apple appears to be prepping for record iPhone sales.

Jul 8, 2014 at 12:00PM

Apple's (NASDAQ:AAPL) highly anticipated iPhone 6 lineup is rumored to consist of two larger phones, a 4.7-inch version and a phablet-like 5.5-inch version. As Apple's largest business segment, accounting for 57% of the tech giant's revenue in its most recent quarter, investors are hoping the new form factor could reinvigorate iPhone sales growth. Investors may get their wish. Apple appears to have considerable confidence in its next-generation smartphone. Here are three reasons why:

1. A hiring spree
Last month, a report from Taiwan's Economic Daily News (via Reuters) said that Apple's largest iPhone manufacturer, Foxconn, is boosting its workforce by 10%, or 100,000 workers, compared to the human resources needed for iPhone 5 and 5s production.

After taking into account the hiring at Apple supplier Pegatron, this hiring spree is so significant that it will play a role in driving greater job creation in the mainland than has been seen in recent memory, Economic Daily said. The Chinese news site said Pegatron is boosting its workforce by 30% for iPhone 6 production.


4.7-inch and 5.5-inch iPhone 6 mockups pictured with the 4-inch iPhone 5s. Source: 9to5Mac, used with permission.

2. 10,000 robots
But Apple and Foxconn's investment in iPhone 6 production goes beyond human resources. Foxconn CEO Terry Gou recently announced that it will soon be putting 10,000 robots to work in its factories, according to IT Home (via MacRumors). Apple, of course, will be the first to use the robots, IT Home says.

These robots, dubbed "Foxbots," can each assemble about 30,000 devices per year, Gou says. At 10,000 robots, that's 300 million devices per year. For perspective, Apple sold about 160 million iPhones in the trailing 12 months. Of course, there is a possibility the robots may also be used for tablet production.

While the recent hire of 100,000 employees suggests Foxconn may not be deploying these robots soon enough to handle initial supply of the iPhone 6 lineup, it is still another sign Apple may be prepping for record iPhone supply.

3. Enormous sapphire display production capacity
Apple's upcoming line of iPhones is rumored to use sapphire crystal for the displays. While some rumors have suggested the smaller 4.7-inch iPhone 6 may not adopt the sapphire crystal yet, there's a consensus in the Apple rumor mill that, at least, the larger iPhone 6 will use the new technology.


Apple already uses sapphire glass to protect the camera in its iPhones and on the home button of the iPhone 5s for Touch ID.

PTT Research analyst Matt Margolis, who has followed Apple's investment in sapphire crystal closely, believes that Apple's sapphire crystal supplier could be readying for production as high as 200 million smartphone displays per year.

Considering these three reports, Apple appears to be preparing for a record year for its largest business segment. Analysts, too, are growing bullish on Apple's upcoming iPhone line. Could Apple's important iPhone segment soon return to 20% plus year-over-year growth, thanks to the larger iPhone 6 line?

The stock that may win big thanks to Apple's alleged iWatch
With Apple's alleged smartwatch device in its pipeline, Apple may be poised to spark a revolution. ABI Research predicts 485 million iWatch-like devices will be sold per year by 2018. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, just click here!

Daniel Sparks 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers