This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

iPhone 6: Will People Even Care?

Stocks in this article: AAPLAMZNGOOGMSFT

NEW YORK ( TheStreet) -- Apple (AAPL) is one of the few tech companies that repeatedly pushes the envelope with its hardware and software. The tech titan's reportedly testing the next iPhone, but will consumers clamor for it like previous versions?

The Next Web reports that developers have started to see logs with an 'iPhone6,1' identifier, using iOS 7, which could be Apple's next mobile operating system.

Apple has traditionally announced the next version of its OS at its Worldwide Developers' Conference in San Francisco during the summer, with the next iPhone coming shortly after, but given the recent market sentiment towards anything Apple, demand could be tepid.

Sentiment has changed towards Apple, especially at the end of 2012, as the company released a slew of new products, including the iPhone 5, iPad mini, fourth-gen iPad, and a host of new Mac computers. I was impressed with the new Macs and the iPad mini, but the iPhone 5 offers incremental changes to the iPhone 4S, at best. It wasn't a drastic change, save for a slightly larger screen, thinner design and a new operating system.

The markets reflected that shifting sentiment, particularly after Apple's last earnings report. In the final three months of the year, Apple fell 19.29%, compared to a decline of just over 3% for the NASDAQ. That's a massive change for the world's largest tech company, and something that won't be easily altered by a slightly thinner screen or an enhanced version of Siri.

Apple bulls will claim that the hardware has already been perfected, and Apple is just tweaking it. That may be true, but consumers are always dazzled by the latest and greatest gadgets, which Apple has done so often in the past. There's a reason why the iPad, which revolutionized the tablet market, outsells offerings by Amazon (AMZN), Google (GOOG), and Microsoft (MSFT). It's a relatively new product, whereas the iPhone has been around for half a decade, and has largely dominated mindshare.

Topeka Capital Markets analyst Brian White believes Apple could move away from the traditional black and white iPhone color schemes, and also offer different sizes. "Our checks are pointing to more choices on the way with the next iPhone with expanded color options and screen sizes," he wrote, in a note. "By providing customers with greater choices with the same high quality performance of the iPhone, we believe Apple has the potential to further expand its market share in the rapidly expanding smartphone world."

I'm highly skeptical Apple would have multiple sized phones, as the company likes to keep its SKUs relatively small, but adding to the color scheme (perhaps pink, green or red) might freshen it up a bit. Of course, this is just a cosmetic change, and not anything drastic.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,358.21 +162.79 0.95%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,621.3810 +55.2430 1.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs