Apple Inc. (NASDAQ:AAPL) has had a rough time in the early months of 2013. The firm’s stock has lost almost 20 percent of its value since the start of the year, and despite the offer of superb dividends and a large buyback, the firm’s stock failed to jump after its most recent earnings report. A new report, from Jefferies Research, promises good things, including an iPhone 6, from the company but investors and customers will have to wait until 2014.
iPhone 6 Release Date:
According to analyst Peter Misek, Apple Inc. (NASDAQ:AAPL) is unlikely to change the shape or basic structure of the iPhone in 2013, and is instead planning on releasing an update, the iPhone 5s, this year. The iPhone 5s is likely to have increased specs, but the same form. In 2014, however, Apple Inc. (NASDAQ:AAPL) will launch an iPhone 6, which according to Jefferies will incorporate a larger screen.
Apple Inc. (NASDAQ:AAPL) has been criticized by some analysts for failing to follow market trends and up the size of the screen of the iPhone to sizes more comparable to competitors running the Google Inc (NASDAQ:GOOG) Android mobile OS. The iPhone 6 has long been expected to break the current mold, though some analysts have predicted that the company will offer different screen sizes on the iPhone 5s.
Apple Inc. (NASDAQ:AAPL) has never been fond of following trends in the market place. That’s one of the reasons the company has been so successful, and one of the reasons that the company’s fans love products like the iPhone 5 so much. Following market trends does not express innovation and Apple Inc. (NASDAQ:AAPL) has been all about innovation in recent years.
The market does seem inclined toward large screen smart phones, however, and despite its unique take on smart phone development, the iPhone 6 is likely to bow to that trend. Apple Inc. (NASDAQ:AAPL) is being squeezed by market pressures, and changing the shape of the iPhone 6 may help lessen the impact of those constraints.
The Jefferies report puts a price target of $420 on Apple Inc. (NASDAQ:AAPL) shares and advises investors to hold the stock. The risks to the company’s stock, according to the report, include accelerated margin compression, lower demand, and the decreasing likelihood of upside in EPS figures in future quarters.