Apple Upgraded From Sector Perform To Outperform: iPhone 6 Will Be A Huge Hit

According to Andy Hargreaves at Pacific Crest, a 4.7-inch iPhone 6 of Apple Inc. (NASDAQ:AAPL) will hit the market shelves in the fall. He believed that tech giant will cost $299 for the phone on-contract which is $100 more from the price of iPhone 5S. In this way, sales and revenues of company will be a lot better. Thus, he upgraded Apple from “sector perform to “outperform” with price objective of $635.
Paying more $100 is not big deal for Apple users as they are comparatively rich, Hargreaves stated. The disappointment of the iPhone 5C is a proof users want to spend more on more innovative and pricy device.

Apple users like first-rate devices so the company has an advantage to charge 100 more for the newer and larger phone. He also mentioned that $299 is charged for the Note, a bigger 6-inch phone by Samsung so Apple can also follow the same method. Though $200 is the cost of iPhone 5S but with a two-year contract, the iPhone 5C comes with price tag of $100. So spending $100 more is not a big deal as the life of a phone ranges two to four years. Same theory is followed by users and they preferred 5S instead of 5C.

There are rumours that Apple will launch two phones this year. But Hargreaves believes that the company will unveil only one phone and it will be a 4.7-inch iPhone. An additional 5.5-inch iPhablet may not be in pipeline of the company for this year.

Some analysts are thinking that Apple stocks tremble because of absence of innovation in its new gadgets in past couple of years. But Hargreaves said that Apple changes it course accordingly to remain in commercially unbeaten new gadget list. The company look for its best chances and timing and unveil new devices or services only when it feels it is the best time when new product has more chances to be successful.