This Day On The Street
Continue to site
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

Apple's iPhone 5S: Innovation on the Tip of Your Finger (Update 2)

There have been concerns that Apple's iPhone, it's major revenue driver, has seen the peak growth days, and that's caused a huge slump in the share price since the iPhone 5 was released.

One thing Apple could do to avoid the peak-iPhone phenomenon would be to launch a lower-cost iPhone, White noted. Many analysts have opined on Apple releasing a cheaper alternative, with the consensus being it would be bullish for Apple. White's research noted that Apple will launch a lower-cost iPhone later this year. The cheaper iPhone would have a curved back with colored plastic and be thicker than the iPhone 5; it could cost as much as $400 without subsidies. "We believe this price point will provide relief for those investors concerned that Apple would be sacrificing too much margin or brand to serve the lower price band of the smartphone market," White noted.

Samsung, HTC and other OEMs have demonstrated that there is a market for larger smartphones, especially in China. Apple's iPhone 5 is the smallest smartphone among the newest set, at 4-inches, and White believes that if Apple were to release a larger phone, it could be a boom in Apple's second most important market.

"...[W]e believe it is inevitable that Apple will need a 5-inch to 5.5-inch iPhone or "iPhad" if the Company wants to remain competitive in China and elsewhere in Asia," White wrote in his note.

AAPL Chart AAPL data by YCharts

Apple shares were lower in Friday trading, off 0.98% to $430.09.

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $121.30 0.00%
GOOG $625.61 0.00%
FB $94.01 0.00%
TSLA $266.15 0.00%
YHOO $36.67 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs