UBS analyst Steve Milunovich told Barron's that based on his checks of the supply chain, the Apple iPhone 6
will be released in August or September. Milunovich expects that a 4.7 inch screen will be used for the device, and that model seems "certain" to be launched during that time period. He added that a 5.5 inch variant of the phone "might or might not
" launch at the same time. If Apple does decide to release the larger-screened model, the analyst says it will have the same resolution as the smaller screened iPhone 6
, which means that it will have a lower pixel
Milunovich expects the Apple iPhone 6 to outsell the Apple iPhone 5s
once the former is released. For all of this year, he sees Apple selling 172 million units of its smartphone vs. 162 million last year. He says that China Mobile alone will account for the 10 million additional sales in 2014. The world's largest carrier jut started selling the Apple iPhone this year.
"Our iPhone model is up just 10mn this year at 172mn vs 162mn last year. China Mobile, which appears to be off to a slow start at about 1mn iPhones in Feb, could be sufficient to account for the entire change. The second calendar half may surprise to the upside if either China Mobile or the iPhone 6 gain traction. Although the iPhone 6 could carry a lower margin since we would be surprised if it is priced at much of a premium, unit demand could be strong as surveys suggest Apple users want larger screen sizes and carriers’ 24-month enforced contracts roll off for 4s owners."-Steve Milunovich, analyst, UBS
While the analyst expects the Apple iPhone 6 to provide lower margins for the manufacturer, he says that Apple could have a strong second half of the year. Milunovich says that surveys suggest that there will be strong demand for a larger-screened version of Apple's iconic smartphone. In addition, owners of the 3.5 inch Apple iPhone 4s
will be coming off their contracts. Add those two things together, and the second half of this year could see Apple raking in the bucks.