The Perfect Timing of Apple Inc (NASDAQ: AAPL)’s iPhone 6

Apple Inc. (NASDAQ: AAPL)’s product lineup is packed, perhaps now more than ever before. The company is not only confident in its products that are ready to be released, but it is also supposedly developing hardware in multiple new categories – including apparel, accessories, and phablets (a combination of a phone and a tablet). All these products have the capability to be revolutionary – even the iPhone 6.

The iPhone 6 boosts several new specs, such as a sapphire screen instead of the Corning Gorilla Glass screen used in previous models. Apple partnered with GT Advanced Technology (NASDAQ: GTAT) to provide the sapphire material for future iPhone 6 models.

Other smartphone makers have had ample time to play with sapphire and evaluate it for their own use in their products. Apple’s major competitors, Samsung (NASDAQOTH: SSNLF) and LG Electronics, have both sampled the material for use in future phones, but decided against it due to the cost.

According to MIT Technology Review, the difference in cost between Gorilla Glass and sapphire was ten times. A cover made of sapphire would cost $30, while a cover made with Gorilla Glass costs only $3. The majority of smartphones on the market cost roughly between $200 and $230 to make. Even if the cost was decreased from $27 to $20, it would still be a 10% increase in costs for components.

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Additionally, this cost number is still without considering other operating expenses. LG’s mobile device team operated last quarter on a margin of negative 0.3%, even having sold 12.3 million units of smartphones. In the case of LG, a switch to sapphire screens, a cost increase, is not even an option

In Samsung’s case, the South Korean company is making a 20.5% profit last quarter, and could theoretically switch to the higher priced sapphire screens. However, it would only be able to afford to implement the changes on higher end models, meaning the majority of Samsung’s products would be unchanged. With competition from Apple’s iPhone 6, this pressures Samsung’s profits margins from both high and low ends.

Thus, with two of its biggest competitors out of the way, Apple can introduce its new sapphire screen technology with nearly no competition.

The iPhone 6 is also supposedly to be launched as a branched product – with a 4.7 inch model and a 5.5 inch model. Both these dimensions are larger than the iPhone 5s and 5c.

Apple’s entry into the large-screen smartphone business could have lasting effects on the smartphone and tablet industry. Its larger phablets could squeeze the demand from mini tablets. Already, Samsung is reporting that the demand for five to six inch smartphones is phasing out the demand for seven to eight inch tablets.

Watch Out For The iWatch, iHome

Apple is also rumored to be working on the iWatch. Designed to be worn on the wrist, the device can connect to the Internet and will have a 2.5 inch touch screen display and run on Apple’s iOS.

This year, smartwatches are expected to surpass 8 million units. With the release of Apple’s iWatch, analysts predict sales upwards of 23 million by 2015.

Additional rumors revealed that Apple is also developing a hardware system that targets the “Internet of things” sort. Speculators claim it could be an innovative speaker system or an encompassing control panel for all the smart devices and gadgets in your home.

Apple recently acquired Beats Electronics, which points the rumors in the direction of the speaker system.

Others insist that a home control panel is more likely, and would utilize Apple’s HomeKit. The hardware would be a hub that runs on iOS for smart home devices.

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While it is difficult to know the sales of Apple’s products now, the number of new technology that Apple has in the works and the Apple’s track record of breaking into new markets, will very likely reward Apple’s shareholders.