The iPhone 6 and iPhone 6 Plus are a huge success for Apple, with unofficial estimates claiming the company sold over 21 million units in the first two weeks of sales (not including China) and over 20 millions units in China alone during the first three days of preorder availability. The phone is still hard to find in many markets in retail stores, with online stores showing a wait time from a few days to a few weeks depending on the model. Apparently, the iPhone 6 is finally the product some people have been clamoring for years that Apple needed to save itself from “impending doom.”
FROM EARLIER: Here’s how you can try the iPhone 6 for a month for just $5
Apple, however, never was, isn’t and won’t be doomed for some time to come. But analysts are finally agreeing that Apple is in a good place.
Morgan Stanley added Apple to its “Best Ideas” list, Business Insider reports, with analyst Katy Huberty telling investors in a research note that Apple shares are “set for significant upside.”
According to Huberty, Apple’s margins are growing on the iPhone 6, which means that Apple stock growth is also expected.
Thanks to a clever move, Apple convinced many people to buy the mid-tier iPhone 6 and iPhone 6 Plus (the 64GB versions) which are $100 more expensive than their corresponding 16GB models. Unlike in previous years when an extra $100 would only get users double the storage of the previous model, Apple used a different approach, launching 16GB, 64GB and 128GB models of both iPhone 6 versions, which makes the middel models more appealing options for many buyers.
In addition to increasing margins for the iPhone 6, Apple is also expected to make plenty of money on the Apple Watch when it launches next year, with the device expected to have “a gross margin to skew toward iPhone (40-50%) rather than iPad (20-30%) levels.”
Furthermore, Credit Suisse also believes Apple’s iPhone 6 mix will help Apple make more money from iPhone sales in FY2015 than in previous years.
Graphics showing Morgan Stanley’s and Credit Suisse’s expectations for Apple profits follow below.
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