That Bigger Screen iPhone 6 Will Come With a Bigger Price Tag

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That Bigger Screen iPhone 6 Will Come With a Bigger Price Tag
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Apple Inc. (NASDAQ:AAPL)’s phones are far from cheap and while some believe that Apple could lose customers if prices rise, others including Raymond James think that suggestion is premature and that Apple’s customers are happy to pay more for a larger screen. In a research not published today by Raymond James, the analyst who authored it maintains that price doesn’t matter when you’re “in for a penny in for a pound.”

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iPhone 6: $100 won’t hurt sales

“Apple will likely charge a $100 premium for the 5.5 inch version that media reports have suggested will be available a few months after the 4.7 inch version,” Raymond James analyst Tavis McCourt told clients in a note.

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“Our June consumer survey points to continued growth in the willingness of iPhone users to pay $100 more for a bigger screened iPhone, with now a full one-third of survey respondents willing to pay a $100 premium,” he added.

Not only is Mr. McCourt worried about Apple Inc. (NASDAQ:AAPL) dropping customers, he went on to write that “data seems to suggest meaningful demand for a larger screen, which should logically mean the iPhone 6-cycle will be strong for upgrade sales, which combined with modest contribution from wearables should cause a modest acceleration in revenue growth in fiscal 2015.”

New price target from Raymond James

In addition to this research ahead of the anticipated iPhone 6, the firm raised its price target from $86 to $102. Presumably, this was raised by the recent 7-to-1 stock split that makes Apple Inc. (NASDAQ:AAPL) more affordable for small investors as well as the firms belief that the stock will “outperform” as its shares “grind higher.”

While Android may still rule the market with Samsung leading the movement, Apple continues to make devices its fans love and remain loyal to when shopping for a new phone.

McCourt wrote: “With Samsung Electronics Co. Ltd. (LON:BC94) (KRX:0059935) trends eroding over the past several quarters and the Android marketplace seemingly undergoing meaningful commoditization, iPhone sales trends in the March quarter, and intra-quarter June data .. should give investors confidence that Apple Inc. (NASDAQ:AAPL) has built a business that is sustainably capable of realizing higher than typical margins, driven by application ecosystem advantages, vertical integration across software, services and hardware, and brand positioning.”

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While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at theflask@gmail.com</i>
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