iPhone 6, “iPad Pro” Could Help Apple Move Back Up ASP Ladder

Analysts continue to predict what the future iPhone 6 and iPad models could mean for Apple Inc. (NASDAQ:AAPL). Deutsche Bank analysts believe the iPhone 6 and a tablet they are calling the “iPad Pro” will help the company shift its average selling price back upward.

iPhone 6, "iPad Pro" Could Help Apple Move Back Up ASP Ladder

Apple’s mini products versus the iPhone 6

Most people are generally expecting the iPhone 6 to have a bigger screen, although beyond that, everyone has ideas about what it should have, from a virtually unbreakable sapphire screen to a 3D sensor from Apple Inc. (NASDAQ:AAPL)’s recent acquisition, PrimeSense. If Apple Inc. (NASDAQ:AAPL) does deliver on wishes for a bigger iPhone, then Deutsche Bank analysts Chris Whitmore and Joakim Mahlberg say the company would be re-shifting its pricing strategy yet again.

Of course the iPhone 5C and the iPad Mini were both aimed at addressing a slightly lower price point. However, if Whitmore and others are right that Apple Inc. (NASDAQ:AAPL) will raise the price of the iPhone along with offering a bigger screen, then the average selling price of the handset could also increase—provided that the company continues to see its high-end handset favored over its less expensive one.

Expectations for the iPhone 6, iPad Pro

Whitmore and Mahlberg expect the iPhone 6 to have a screen size of between 4.8 inches and 5.5 inches. They also expect to see the screen size of the iPad bumped up to 13 inches under the name iPad Pro. The analysts say because of the robust demand Apple Inc. (NASDAQ:AAPL) seems to have enjoyed over Black Friday weekend, they would expect the company to continue to do well with larger devices which are priced even higher.

They believe a bigger iPhone 6, paired with a higher price tag, should “increase investor confidence in the medium-term margin and earnings profile at Apple Inc. (NASDAQ:AAPL).” They increased their price target from $575 per share to $625 per share in their recent report.