Apple Stock Rises on Record Sales of iPhone 6, iPhone 6 Plus

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Apple (AAPL) stock is regaining the little ground it lost after the debut of the iPhone 6 thanks to record sales of both models of the new smartphone, especially the larger of the two. But now that AAPL has a phablet-sized phone, what will it do for an encore?

apple stock, iphone 6

Source: Apple

Apple sold a record 10 million iPhone 6 and iPhone 6 Plus smartphones over the weekend, and the new devices haven’t even gone on sale in China yet.

If past Apple iPhones have flown off the shelves, the iPhone 6 is going supersonic. Apple can expect other iPhone sales records to come tumbling down, too.

After all, AAPL is rolling out the iPhone 6 and iPhone 6 Plus in 20 more countries by the end of the week and 115 countries by the end of the year. Given the momentum the iPhone 6 and iPhone 6 Plus built up in just 10 countries over the last few days, anyone holding Apple stock can expect an avalanche of new sales.

Indeed, sales of iPhone 6 and iPhone 6 Plus are so strong, they make the debuts of other recent models look downright poky. A year ago, AAPL sold 9 million new iPhone 5S’s iPhone 5C’s over the first weekend they went on sale in 11 countries — and one of those countries was China.

Brisk sales for iPhone 6 were widely expected — Apple was long overdue for a refresh, with lots owners of even the old iPhone 4 hanging on for the next iteration of the device — but the weekend sales figures show AAPL has a huge hit.

Analysts were giddy over the numbers — the most optimistic forecasts were for sales of 10 million iPhone 6 and iPhone 6 Plus — and some said innovation at Apple is back.

For the sake of anyone holding Apple stock, let’s hope so. The iPhone 6 Plus is a big step forward at AAPL, but it’s hardly innovative in the wider industry.

iPhone 6 Plus Set to Dominate Phablet Market

Steve Jobs famously saw no need for larger phones (or smaller iPads), but consumers have other ideas. Ever since Samsung (SSNLF) pioneered the idea of the phablet — a smartphone as big as a small tablet — they’ve been steadily carving out a significant share of the market.

Sure, the outsized design of phablets looks kind of goofy slapped upside your head when making calls, but how much time do smartphone spend making calls anymore? When it comes to communications, most smartphone users default to texting, WhatsApp or maybe even email. After that, they’re using their devices to create, consume and share content.

The iPhone 6 Plus is already getting reviewed as the best big smartphone on the market. (The iPhone 6 has been proclaimed the best smartphone, period.) This upgrade cycle is going to go on for a good long while, propelling the bottom line and sending Apple stock to new heights.

But what comes next? The iPhone is by far the most important product Apple has. The iPad was supposed to be the next big thing, but sales have stalled out, partly because of phablets.

A bigger iPhone isn’t really an innovation. Eventually, Apple will have to truly move the category in a new direction to maintain the sales it needs. And that should worry anyone holding Apple stock for the long haul.

No, we’re nowhere close to that problem yet. The iPhone 6 just debuted. Anyone holding Apple stock can sit back and enjoy the ride for a year or two.

The handwringing over what comes next, however, will start sooner than you think.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/09/apple-stock-aapl-iphone-6-plus/.

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