Forget Apple-Beats, which is fun, but really a sideshow for Apple.
Morgan Stanley analyst Katy Huberty was just in Asia, and she’s hearing that orders for the iPhone 6 are 20% higher than for the iPhone 5S, according to her supply chain sources. She was only expecting a 12% bump in iPhone sales, so this would be a big boost for Apple.
“At this point, we see no major bottleneck in iPhone 6 production and an earlier production ramp could improve volumes early in the cycle,” says Huberty.
Analysts are expecting the iPhone 6 to have a bigger screen, which will lead to a monster upgrade cycle for Apple. There are a lot of iPhone users with a 3.5-inch iPhone 4 or iPhone 4S. Analysts like Huberty believe that those people are going to ditch their old, tiny iPhones as soon as the iPhone 6 is out.
In Huberty’s note, she also mentions this, which is a story in its own right, really: “iPhone 4S continues to outpace 5C, according to suppliers, and will likely remain the low-end of the portfolio into the next cycle.”
Apple’s low-cost phone is beating its mid-cost phone. It will be interesting to see how this affects Apple’s next product cycle.
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