Home Technology iPhone 6 To Boost 2015 Apple Revenue Even On Flat Shipments

iPhone 6 To Boost 2015 Apple Revenue Even On Flat Shipments

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Apple Inc. (NASDAQ:AAPL)’s latest and greatest smartphones, the iPhone 6 and 6 Plus, have set the cash registers ringing. Apple sold more than 10 million units in the opening weekend in September. Demand for the iPhone 6 and its bigger sibling is so strong that analysts expect Apple to exit December quarter with a huge amount of unfulfilled demand.

iPhone 6 ASP trend to drive revenue growth

Morgan Stanley analyst Katy Huberty believes that the iPhone 6 has triggered the “mother of all upgrades” and demand for the new devices will remain strong through at least 2016. Even if sales remain flat, revenue will see significant growth due to the ASP trend, says Credit Suisse analyst Thompson Wu. The average selling price of the iPhone 6 and 6 Plus is significantly higher than their predecessors.

iPhone 6

Apple has strategically ditched the 32GB storage option for its new iPhones. Most users find 16GB storage insufficient, and there is no microSD slot. A 32GB storage option would have been optimum for most buyers. Potential buyers have no option but to go for 64GB or 128GB options, which come at a higher price tag. For instance, contract-free 4.7-inch iPhone 6 costs $649 for 16GB, $749 for 64GB and $849 for 128GB option. The iPhone 6 Plus with 16GB sets you back by $749, while the 64GB model costs $849 and 128GB variant comes at $949.

12-inch iPad to hit the stores in Q2, 2015

BMO Capital Markets analyst Keith Bachman said in a research note earlier this week that you could find the 16GB model very easily in Apple stores and online. But there is a shortage of 64GB and 128GB, indicating that more users are opting for higher storage variants. It will have a significant impact on Apple’s revenue. Credit Suisse said warranty expenses as a percentage of sales were 1.3%. The research firm expects Apple to ship 187 million iPhones in 2015.

iPhone 6 Warranty Expense

Talking about the much-rumored 12-inch iPad, Thompson Wu said he expected Apple to start shipping it in the second-quarter of 2015. Hon Hai Precision Technology, which currently manufactures the iPad Mini and 9.7-inch iPad, will likely be responsible for 100% of the 12-inch iPad model.

Apple shares inched up 1.30% on Tuesday to close at $115.47.

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