iPhone 6: why Apple's new phone may disappoint

Expectations are sky-high for the iPhone 6, but some analysts doubt Apple's ability to deliver

LAST UPDATED AT 08:23 ON FRI 5 SEP 2014

Analysts have warned that the iPhone 6 may fail to live up to its pre-launch hype when the new phone is finally unveiled next week.

Expectations have been running at fever pitch and Apple shares reached a record high last week, as Apple investors looked forward to the launch of a substantially updated handset.

The iPhone 6 is expected to include a faster processor, slimmer frame, larger display and more scratch-resistant screen – as well as a slick new design.

But analyst Gene Munster of Piper Jaffray says that early sales of the iPhone 6 may compare unfavourably with those of its predecessors.

"In the near term, we caution that there will likely be noise in the opening weekend iPhone 6 sales numbers," he said, according to Business Insider.

His reasoning is that last year Apple launched two new iPhones, the 5S and 5C, and immediately took the previous model off sale. Between them, the two new models sold nine million units in three days.

Munster predicts that the iPhone 6 will sell 6.5m units in its first three days on the shelves – more than the 5.4m 5S phones sold in the same period last year, but significantly down on the combined figures for both new phones.

Apple is eventually expected to bring out two versions of the iPhone 6, but most commentators now expect to see only a 4.7-inch version of the device at the launch event on 9 September.

A larger model, possibly with a 5.5-inch screen is predicted for later this year.

After peaking at $103.30 on Tuesday, Apple shares have fallen sharply in recent days, recording a 4 per cent drop yesterday.

"Just days before the launch of a new iPhone, Apple shares had their worst day since January," the Daily Mail reports, "with one brokerage warning of a stock downgrade unless its new products show better promise for profit growth."

An analyst from Pacific Crest Securities advised investors to sell Apple shares and bank their gains "unless next week's event details massive incremental profit opportunities" – in other words exciting new products.

But most analysts remain bullish about Apple. Even Munster predicts that the company will rebound from unflattering sales figures and short-term profit-taking.

These factors "may prove to be a speed bump to shares," he says, but "we expect additional product launches and the platform theme to move shares higher through year-end."

Regardless of any misgivings in the financial markets, grassroots excitement about the iPhone 6 shows no sign of abating. Yesterday queues had already begun to form outside the flagship Apple store in New York, even though the phone is unlikely to go on sale until at least 19 September.

The Sydney Morning Herald reports that Australian iPhone enthusiasts have been engaging the services of "professional queuers" to stand in line for the new device.

"By Friday, the number of ads looking for professional queuers at online tasks marketplace Airtasker had soared, along with the premium, with some consumers advertisers offering [Aus]$200 for the privilege," the paper reports.

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Friday, September 5, 2014