iPhone 6S On Release Date, Apple Watch Will Propel AAPL Price To $142 Per Share
Apple can count on two key pushes this 2015 to further grow its business. First to bump up the tech giant’s revenue prospects is the Apple Watch that will make a landfall this April. Then the iPhone 6S release date expected later in the year.
The next iPhone that according to RBC Capital Markets is coming out anytime on September 2015 and the immediate aftermath would be – record sales numbers for the iPhone maker. “The iPhone 6s series in September could lead to further upside,” the investment firm was reported by Apple Insider as saying.
Apple Watch a cash cow
Analysts are equally optimistic on the upcoming Apple Watch, which according to Gene Munster of Piper Jaffray will draw in one million buyers in the first few days of its availability. Depending on the actual units that Apple can deliver to the market, the iOS smartwatch is well-positioned to clear out 300,000 units in combined actual buys and per-orders, Munster predicted.
By the end of 2015, the Apple Watch shipments will total eight million units if the figures translate to ownership that could lead to Apple revenue of $4.4 billion in calendar year 2015. Over the next two year, the timepiece – the original and the refresh versions – will account for total sales of 50 million units at the maximum, the Piper Jaffray analyst told Apple Insider in a separate report.
The overall high revenue forecast, according to Munster, is anchored on the notion that up to 10 per cent of existing iPhone users will grab the Apple Watch. The smartwatch has stand-alone features but it optimised for pairing with the latest iPhone models.
Along the same line, Apple watchers are suggesting that the Apple Watch could re-energise the so-called Halo Effect – in which Apple fans tend to buy another Apple product after getting a taste of the whole ecosystem. The same phenomenon, first observed when the iPod classic was introduced, is said to also trigger massive buys for the iPhone 6S, a new report said.
iPhone 6S means higher gross margin
As analysts are growing upbeat on the Apple Watch, the iPhone 6S is only expected to sustain or even surpass the record showing of its immediate predecessor – the iPhone 6. Specifically, the 6S will mean improved the gross margin potential of Apple as the device will merely mirror the design and build seen with the iPhone 6, RBC analyst Amit Daryanani said.
As the flagship phone for fiscal year 2015, the iPhone 6S is a huge contribution to Apple’s projected sales of $227.1 billion. Consequently, unit price of AAPL stock would hit $142 as RBC slight upgrades its outlook for the company.
Apple has indicated that the Apple Watch will start selling April this year. The iPhone 6S, on the other hand, is likely set for a release date in the second half of 2015 with September pegged as the earliest arrival moment.
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