AAPL seen to soar with all-glass iPhone 8 2017 release (Photo : Martin Hajek)
The iPhone 7 and 7 Plus launch later this 2016 will not lead to the same blockbuster results of their immediate predecessors largely due to lack of innovative features. The real deal, according to a new report, is the 2017 refresh that on release date will be known as iPhone 8 and will send Apple (AAPL) stock to new heights.
This early, Credit Suisse has characterized the 2016 iPhone rollout as a "muted upgrade cycle," that could see Apple's earnings per share (EPS) to decline by 5% in calendar year 2017. The slide will be likely caused by the perceived absence of killer features for the next iPhone.
While supply chain ramblings indicate that from the iPhone 6S, the iPhone 7 will offer fresh functionalities like a dual camera setting for the phablet-size iPhone 7 Plus, most analysts are convinced that the upgrades will fall short of expectations. Sales performance will not be the same as that of the iPhone 6 and 6S and the same fear is further fired up by the new report that dual-lens rear shooter for the 7 Plus will likely not push through due to tech issues.
In contrast, analysts are incredibly optimistic when it comes to the flagship smartphone that Apple will push out next year. Credit Suisse analyst Kulbinder Garcha told Apple Insider that the device will skip the S phase and will be labelled as the iPhone 8.
Compared to the device it will replace, the iPhone 8 is seen as a game-changer with its all-glass casing, which KGI Securities analyst Ming-chi Kuo has also predicted in a recent note, likening the device to the iPhone 4/4S design and build but with slimmer and lighter finish. Apple Insider said that the 2017 iPhone "is rumored to have a major redesign coinciding with the product's 10-year anniversary."
Garcha agreed with Kuo that the iPhone 8 is jam-packed with the compelling features that will prod new buys and upgrades in great numbers.
"We believe the iPhone 8 will be feature and specification rich. These features, coming potentially in September 2017 and even if in just a Pro version of the device, should drive an accelerated replacement cycle and draw in new users and should result in mix improvements," the analyst wrote.
He is equally convinced that feature upgrades long-demanded by Apple fans will be realized in time the iPhone 8 touchdown next year. The physical home button will be replaced by a capacitive key, the OLED front panel will be embedded with sensors for the front camera and phone speaker and the 2018 iPhone will finally boast of built-in wireless charging support, the Credit Suisse analyst said.
With these game-changing features, Garcha is upbeat that APPL shares will fly high in the immediate aftermath of the iPhone 8 release date in the closing months of 2017, leading to high of 250 million units to be sold in the following year, which for Apple investors translate to EPS of $12.32 in 2018.
