iPhone 6 with Two Screens to Come, Confirmed Release ‘Material Upgrade’ to Larger-Screen iPhone Drive Consumer Demand

By @peevesky on

The Wall Street offered positive notes for Apple's performance and upcoming releases driving the company's shares up again. As of June 25, the company's shares went up to 47 cents. According to the notes and predictions from analysts, the material upgrade and large screen of the phone may drive consumer demand putting Apple ahead of the game. More importantly, should the company confirm the release and the expected specs, the iPhone 6 may be the biggest release yet from Apple since the App Store. 

RBC Capital Markets's Amit Daryanani shares his findings about Apple's upcoming release. According to the analyst that after surveying 4,000 consumers, they "found the results to be constructive with regard to Apple's demand for 2HCY14." Analysts expect a "material upgrade cycle" following the release of the iPhone 6 especially with the larger variant. Daryanani shared the results of the survey via Barrons indicating the following: 

"1) nearly 50% of consumers who plan to upgrade their phone intend to purchase an iPhone within the next three months; 2) 35% of the users who don't expect to purchase an iPhone would do so should Apple offer a larger form factor (Android cannibalization with iPhone 6); 3) 26% of the consumers are willing to pay a $100 premium for a 5.5" screen size; 4) ~74% of the consumers are aware that AAPL will launch a new iPhone this year (airpocket in September guide?); and 5) what consumers most desire from a new iPhone is better battery life, followed by larger screen size." 

According to the study, more than a third of those who participated wants to purchase or upgrade to the upcoming smartphone in a span of six months. Though the desire to upgrade and purchase in the next six months is not exclusive to a brand, Apple stands to gain from this when it releases within the specified period. 

"Unsurprisingly, the typical upgrade cycle remains in the 1- to 3-year range, in lock-step with the standard 2-year carrier cycle." Daryanani added. There are also participants who cited Apple's price as a possible deterrent though analysts like Tavis McCourt from Raymond James cited in his research note that the market will be willing to shoulder the additional cost. 

To make things more interesting, another patent granted to Apple suggests that the company may include a "second screen" to iDevices like the iPhone. Filed under US patent number 8,763,060, the patent allows Apple to provide two screen settings with the first player offering "movies, television shows, webisodes, straight to digital storage medium productions, online videos, etc," whereas the secondary screen offers "actors, audio sound tracks, images of clothing and other goods."



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