Investors Have Low Expectations From iPhone 6 [Analyst]

Later this year, quite possibly in the second half, Apple is going to launch the iPhone 6. Rumor has it that this time around the company will again launch two models, if it keeps the current naming scheme, iPhone 6s and iPhone 6c. Customers have a lot of expectations, the biggest being increased display sizes. They might be impressed by what Apple puts before them, but Piper Jaffray analyst Gene Munster believes it will take a lot more to meet the expectations of major Wall Street investors.

Munster’s meetings with mutual funds, hedge funds and deep pocketed investors give him an inkling that they have low expectations for iPhone 6 sales. They seem to hold the same view even if Apple enters into a new product category, wearables for example, with the iWatch. Munster doesn’t agree with them.

The analyst believes this isn’t the right thinking, but presents a scenario which could benefit the investors. Apple’s shares are likely to react bullishly if the new iPhone is able to steal customers away from large screened Android smartphone. Stock price is likely to react the same way should the iWatch become a hit, thus the investors would get a better bang for their buck.

Even if that doesn’t happen, its not like they stand to lose a great deal. Munster’s worst case scenario is sales of next generation iPhone meeting market expectations, which would result in stocks remaining flat, neither gaining, nor losing.

Adnan Farooqui
Categories: Apple, Cellphones
Tags: iphone 6