iPhone 6 Will Have A Larger Screen [REPORT]

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Jefferies analyst Peter Misek has not been all that bullish on Apple Inc. (NASDAQ:AAPL) recently. Misek was one of the analysts so bitterly disappointed about the pricing of the iPhone 5c, and even the company’s massive first weekend sales could not shift his opinion. He’s changed his tune now, however, and its all down to his hopes for the iPhone 6.

iPhone 6 Will Have A Larger Screen [REPORT]

Misek says that his checks with suppliers indicate that Apple Inc. (NASDAQ:AAPL) is getting components for the iPhone at lower prices than before. According to his analysis, that means the company has much more room to pack the phone with features. He sees an iPhone 6 with a 4.8″ screen coming in the next year. It’s the strongest indication of a big screen iPhone yet.

iPhone 6 larger screen

Android users have been offered phones with large screens for a long time. Those phones, including the almost ridiculous “phablets,” are extremely popular. A premium Android model could not have a screen the size of the iPhone 5s screen in this day and age. Apple Inc. (NASDAQ:AAPL) boosted the screen size in the iPhone 5, but it still doesn’t compare to Android models.

The iPhone 6 will, according to Misek, sport a 4.8 inch screen. Apple Inc. (NASDAQ:AAPL) is due to release the iPhone 6 next year, but analysts are undecided on whether the company will try to release the iPhone in the middle of the year or continue its mid-Autumn release date run.

According to Misek, the introduction of a large-screen iPhone 6 will have a meaningful effect on upgrades for Apple Inc. (NASDAQ:AAPL). Big rather than incremental changes drive upgrades, and Apple Inc. (NASDAQ:AAPL) has avoided large changes for some time now. The key to the large screen iPhone 6 is the cost of components in the iPhone.

iPhone 6 and component cost at Apple

The Jefferies report indicates that Apple Inc. (NASDAQ:AAPL) is getting lower prices on components right now. That means the company’s margins on each phone sold are higher than they were before. It also means the company can afford to add more expensive components while keeping margins at a good level.

Misek put a new price target of $600 and a Buy recommendation. Misek previously had a Hold on shares in the company and his price target was just $450 in the wake of the iPhone 5c release. The iPhone 6 will likely have a bigger screen. When it will arrive is a more difficult question to answer.

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