Senior cellular communications industry sources believe that the approaching launch of iPhone 6 will be one of Apple's most successful launches in Israel in recent years. The same predictions are being made for the world as a whole. Goldman Sachs economists estimated that the company will sell 62 million iPhone devices in the fourth quarter of 2014 and 205 million in 2015, in line with the previous forecasts. Due to the use of new screens made out of expensive material, the analysts are predicting that the company will achieve an annual profit of $7.67 per share in 2015, compared with the previous $7.57 forecast. They give the Apple share a $115 target price with a "Buy" recommendation.
One of the senior cellular sources told "Globes" about how he felt about the launch. "It's already the fifth launch I've seen of Apple's iPhones, and in my opinion, it's the strongest and most significant, and not just in the iPhone sector. The cellular wallet payments solution, as unveiled, is something that will finally work the way it's supposed to. Up until now, all the attempts to do this have failed, and in my opinion, their technological power will prove itself and bring about the revolution. Payment using a cellular device will be the biggest revolution in years," he said.
"Globes": What about the products themselves: the iPhones and the new watch?
"Where the products themselves are concerned, they have put out two sizes that the market wants, needs, and is used to using. As usual, they aren't necessarily the first, but they always bring the most finely tuned and complete product where its operating system, size, and battery are concerned. Apple has completed the entire package.
"There are more than a few customers that switched to Android over the past year or two because of the screen size. People looked for a device with a large screen, and even if their initial preference was for Apple, they had no such screen there then, so people bought other devices. Now they have a solution in two sizes, and I think that there will be a mass movement back to the iPhone."
Did you distinguish a drop in iPhone sales because of the small screen?
"The market did not experience a significant drop in iPhone 5 sales; people's desire for a large screen caused only a very slow and moderate drop. The iPhone community is very loyal, and will continue buying the next iPhone. People who want an iPhone with a large screen will go back to iPhone."
What will most users prefer: a 4.7-inch screen or a 5.5-inch screen?
"That's a question I've been thinking a lot about in the past few days. In my opinion, the majority will go with the smaller screen because of the price, but not an absolute majority. I assume that if the price is the same, most people would take the larger screen."
"I think the watch will catch on"
What do you think the prices will be?
"Prices in Israel do not always correspond to the prices in the US. Apple announced that the 5.5-inch phone will be sold for $299 in a contract including a commitment with the companies, and $749 without a contract and excluding VAT. In my opinion, a 5.5-inch 6 plus device will cost almost NIS 4,000, and the price of the 6 device will be around NIS 3,500."
What do you say about the watch?
"I think it will catch on. As is their usual practice, it appears that the product is much more complete than what we have seen to date. I think they invested more than others in the user interface, which is the biggest challenge, because the watch has a small screen. It looks like they invested a great deal in design and fashion to make it a fashionable device with its own special message."
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2014
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