"The 'mother lode' of all Apple upgrade cycles" said to bring two new iPhones this year


We all know that Apple releases one new iPhone every year (it's been so since the launch of the first iPhone in 2007), but more and more rumors claim that this year will be different, as the Cupertino-based company is allegedly planning to unveil two new iPhones in 2014: a 4.7-inch and a 5.5-inch one. Today, analysts from ISI (International Strategy & Investment) issued a bullish note on Apple, reiterating the rumors about two new iPhones this year. ISI also upped its price target for Apple stock to $600 (Apple shares currently trade at around $525 apiece), and upped its rating to “strong buy”.

"'Large-screen envy' is prevalent among the iPhone installed base and we believe a ~5" form-factor iPhone would spark a massive upgrade cycle as well as many 'Android switchers' returning back to the iPhone," ISI explained their reasons for the upgrade.

"We estimate the current iPhone installed base to be about 260mil users (roughly equivalent to the last 7 quarters worth of iPhone units). By our calculations, we estimate slightly over half of iPhone sales today go to upgrades (with the majority of new users coming from international markets). However, we believe that while the upgrade rate (i.e., % of installed base upgrading their device in a given quarter) had hovered in the 10-11% range over 2011-12, it has now dropped closer to 9% as users find few compelling reasons to upgrade. In peak quarters, the upgrade rate has reached the ~12-14% range and we expect a similar upgrade rate in 2H14 for iPhone 6, if not better. We believe this could drive ~$3.00 (or ~10-15%) EPS accretion over 2H14 assuming an incremental ~3% of the base upgrades each quarter," ISI said.

In a nutshell, ISI suggests that having new iPhones with a larger display could be a huge incentive for customers to upgrade their old iPhones, plus ISI believes that such rumored larger-screen iPhones would also eat away from the Android market.

ISI is also not the only analyst to upgrade its outlook on Apple stock recently. Pacific Crest upgraded Apple from “sector perform” to “outperform”, and others reiterated a “buy” rating on the stock. Let’s not forget that in the last few years, Apple unveiled its iPhone at the beginning of the third quarter, and - if it follows the same timelines this year - we’re still nearly half a year off from that expected announcement.

source: Business Insider

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60 Comments

1. Cha7520

Posts: 222; Member since: Oct 31, 2010

Awesome! Apple will be catching up with Android specs of 2012!

3. nestea unregistered

Look at the benchmark tests scores, it beats those quad cores 2.3GHz cpu with 2GB ram, so stfu

4. Felix_Gatto

Posts: 942; Member since: Jul 03, 2013

It's about the software not the hardware. iOS is one of the most optimized OS for mobile.

6. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Correction, it IS.

11. akki20892

Posts: 3902; Member since: Feb 04, 2013

It's not about only OS, but it's about hardware and software meet really well.

5. PapaSmurf

Posts: 10457; Member since: May 14, 2012

No need to say stfu. Please learn some manners because right now you sound like a ignorant 12 year old.

8. galanoth

Posts: 428; Member since: Nov 26, 2011

So when Android beats iOS in benchmarks people say benchmarks don't care. But when iOS beats Android in benchmarks then benchmarks become relevant again?

10. Kyokado

Posts: 115; Member since: Jul 11, 2013

Brace yourselves for iphab. Slogan:"its gonna be a blast"

24. Sauce unregistered

No. When Android phones beat iPhone in benchmarks people say benchmarks don't care, but when iOS phones beat (and embarrass) Android phones in benchmarks, people laugh, show off, mock, and troll Android users; you know, the Adnroid ones who get 2 inch hard ons over some paper specs lol. No one in the social world gives a flying f**k about most of these paper stats, just people on this website, and similar sites.

15. alterecho

Posts: 1106; Member since: Feb 23, 2012

For Android users, bigger screen means better spec'd.

19. XperiaFanZone

Posts: 2279; Member since: Sep 21, 2012

Yeah, the One Max and the Z Ultra does have better specs than the Note 3. *sarcasm*

31. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Lol Yea, whenever it fits the narrative that supports your side throw it in the others' face. Classic fan boy behavior never changes. But really, Apple fans have been hating on large screens for years now, can't wait for them to start justifying it now. All the "but Apple did it right" idiots will finally come out of their mom's basements. Then they'll have 30 software and some major antennae-gate style problem will show up but they'll still be telling very one how Apple stuff just works. Then a year or so later their amazingly powerful hardware will get a software "update" that will cripple everything and they'll say that the new and improved colors and transparency or animations are lagging the older hardware. So they'll go out and line up for the newest Apple device because memory isn't just limited in apples products. Damn they never learn, it's like watching the pure definition of insanity in action. "The definition of insanity is doing the same thing over and over and expecting different results."

37. Sauce unregistered

The biggest things Android fanboys like yourself do, is vicitimize yourselves. Really, no one (apple fanboy trolls) cares what we say and how we act. Its all a joke to us. You take this ballpark too seriously. When we see you crying like a little biotch, we take pleasure from it. Honestly lol, I'm feeling petty for your family.

17. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

As an Android user myself, I feel bad for you... you are hard-wired to only care about the spec and not the end user experience. iOS and Android are completely different platform, so natural what they need under the hoods are going to be different. iOS doesn't required a lot of horsepower to run as smoothly as its Android counterpart. What really matters is the end user experience. Is it smooth? Do you experience any lag? Do you like how the OS is set up? Does it have everything you want it from a phone? Stop this spec war already... It's like trying to compare a Ford F-150 to Toyota Prius.

21. Kan_wha

Posts: 88; Member since: Jun 25, 2012

Specs do matter, but more so in the long term. My iPhone 4 has been unusable since I've updated it because the hardware is so archaic and slow. For people like myself, where "if aint broke, dont fix it" is the rule, the "forced" update + low spec kills iPhones for me. My girlfriend's galaxy nexus on the other hand, beefy specs back in the day, still completely usable and the software updates makes it better, not worse...

22. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

The reason for your iPhone 4 being a bit slow is bc the Apple finally added true multitasking in its iOS which could be CPU hungry from time to time. It's nice that Apple has great OS support for its old devices. However, sometime new version of iOS is just too much for the older iPhones to handle.

32. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Lol don't kid yourself there is no multitasking in iOS still. Do take a look at their developer documentation and app life cycle, there is no background state, it's either on or off. They did put a new skin on it though, to fool the easily fooled.

33. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

Yeah, I agree iOS's multitasking it's much of anything... That's why I love my Android :D Nexus 4!!

25. Sauce unregistered

7.1 fixes that issue. My dads iPhone 4 is fast and isn't laggy at all anymore.

29. suneeboy

Posts: 201; Member since: Oct 02, 2012

Specs don't matter man, it's all about the user experience. If specs mattered than the iPhone would be one of the worst phones available relative to its direct competition. The fact that an iPhone 4 is still in the discussion on any level should tell you something. Do you hear anyone talking about an HTC Evo or Galaxy S2 these days?

46. Diezparda

Posts: 941; Member since: Oct 23, 2013

Really like your comment sir, my friends iPhone 4 to had same experience. I have iPod 5th gen which has little better specs than the iPhone 4 and i'm afraid i'm not gonna upgrade to iOS 8 if there won't be much different features and will affect their performance.

2. pradeepreddy

Posts: 65; Member since: Apr 01, 2013

it looks like small Ipad.

7. palmguy

Posts: 983; Member since: Mar 22, 2011

I doubt that. Apple already tried two iPhones. They're going to go back to just one.

20. appleDOESNT.com

Posts: 456; Member since: Nov 19, 2011

ya, apple doesn't actually have the user base to support too many yearly releases lol. ifollowers are mANy but not actually that many when you think about it/ They already bombard their iCult with a S hit every other year that is a icremental upgrade, so adding two 2 phones per year is prolly not gonna help. apple is not about cuttig edge or being the first to market with technologies, Cook doesn't get this, you make like 4 products dude, you have a iFollowing, cater to them not the masses. cheap iPones, meh, more iPones, meh, just make 1 good one like when Steve was around

9. cheeseycheeser

Posts: 413; Member since: Mar 24, 2011

I really hope one of them will stay with the iPhone 5c design and materials, because I actually kinda want one.

12. Just.Saying

Posts: 132; Member since: Apr 04, 2013

If tim Cook phones me right now and say here's a free iPhone id say .....No thanks, I Have Standards..........

13. ryq24

Posts: 875; Member since: Oct 17, 2011

Price will be the main factor if iPhone 6 will put a big dent on android sales. The reason why android is the market leader is the cheap android phones that have flooded the market.

14. fzacek

Posts: 2486; Member since: Jan 26, 2014

I don't think Apple could do such a radical move...

16. baldilocks

Posts: 1540; Member since: Dec 14, 2008

Do you NOT remember that they released two new iPhones at the SAME time LAST year?? The iPhone 5s and iPhone 5c. Do you tech sites print these articles just for traffic, without even checking facts?

18. Leonis

Posts: 338; Member since: Jan 08, 2014

I know tons of people who had wished for a bigger screen for a loooooong time and its finally coming to iphone. I am certain many many will go, mostly girls will go away from android and buy the iphone instead. For me I have wanted a bigger screen for a long time too but the most important thing is the iOS. If it won't change much and add some great new features like quick reply in messages, start screen should have more alternatives like android phones.... well then I won't get an iphone again. My current iphone 4s is pretty good and I am extremely happy with it.

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