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  • IPhone 6 Likely To Enjoy A Higher Adoption Rate Than Its Predecessors 0 comments
    Apr 14, 2014 12:56 PM | about stocks: AMZN

    A recent large scale survey conducted by 451 Research has revealed that a markedly higher percentage of North American consumers plan to buy the latest Apple(NASDAQ:AAPL) iPhone, the iPhone 6, than is the case for either iPhone 5 or iPhone 5s. The survey provided like-for-like comparisons for iPhone 5 vs. iPhone 6, and, iPhone 5s vs. iPhone 6 from a total of 4,109 respondents. 40% of the respondents said that they were likely to buy the iPhone 6 compared to just 33% for iPhone 5, and 26% of iPhone 5s.

     

    Likelihood of Purchasing a New iPhone for Yourself, Family, or Friends

    Very Likely

    Somewhat Likely

    iPhone 6

    14%

    26%

    iPhone 5s

    9%

    17%

    iPhone 5

    15%

    18%

    Andy Golub of 451 Research said that the demand for the iPhone 6 is the highest the firm has ever seen for any unannounced Apple smartphone, noting that widespread speculation over a larger screen for the new model is clearly striking a chord with consumers.

    Respondents in the survey were asked to assume that the iPhone 6 would sport a larger screen than its predecessors, with a pricing of $199 for a two-year contract for16GB, $299 for 32GB, and $399 for 64 GB. It's rumored that the 4.7-inch model could be released before a larger 5.5-inch version is unveiled.

    Meanwhile, Amazon (NASDAQ:AMZN) plans to launch its much-awaited smartphone in July this year, just in time before the iPhone 6 hits the market. The smartphone is expected to run on Google's Android OS, and will be produced jointly with HTC.

    HTC had partnered with Facebook to market its HTC First smartphones, which received a major blow after AT&T stopped stocking the model around June last year. The Amazon smartphone, however, is expected to perform better than that since it's likely to borrow some hot features such as 'Mayday,' an Amazon user-support service, from Kindle Fire.

    The Amazon smartphone will feature a display capable of creating 3D images without any need for glasses, by employing retina-tracking technology embedded in four sensors to help it create a 3-D experience similar to a hologram. No smartphone manufacturer has been able to bring 3D display to the mainstream, and only time will tell whether Amazon will be the first to pull it off.

    If the new phone becomes a hit with consumers, it could potentially place Apple's iPhones under further pricing pressure. Both Apple and Samsung have been facing margin pressure in a highly competitive smartphone industry.

    Apple makes major iOS improvements with iOS 8

    Apple is expected to announce the launch of its new iOS version iOS 8, codenamed Okemo, during its Worldwide Developers Conference to be held in June. The new iOS will come with a raft of new features that set it apart from iOS 7, chief among them a new Healthbook app, and a vastly improved Maps search.

    Healthbook is an application that aggregates a user's health and fitness data from different hardware accessories and applications. The app looks like Passbook in terms of its user-interface design, and users will be able to customize it to give visual priority to the health statistics that are most important to them. The app will be capable of tracking various bloodwork details such as blood pressure, heart rate, nutrition, sleep, respiratory rate, oxygen saturation, blood sugar, weight and activity.

    The Activity section will track steps taken, calories burned, and total distance covered in miles. The Weight tab will track a person's weight, BMI,or body mass index, and percentage of fat. The current health accessories marketplace includes wireless weight scales, and Healthbook is likely to receive its data from products like that.

    Apple also engaged the services of Benoit Dupin, the immediate former vice president of Amazon's A9 Search Technology group to help fix its Map search, notorious for its often unreliable search results.

    At the heart of Apple's Maps, App Store and iTunes Store is search. Customers can use the feature to search for apps, movies, songs, and location. Its users have often criticized App Store for sporting an unwieldy search process.

    Conclusion

    The iPhone 6 is likely to be unveiled to a warm reception by consumers than its predecessors, if the 451 Research is any indication. The large screen seems to be its biggest attraction. Meanwhile, Apple is getting ready to unveil a vastly-improved iOS 8, with a Healthbook app and a better Maps search. These moves should keep the company's hordes of loyal fans happy.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Business relationship disclosure: This article was written by Alex Kimani, the chief analyst of Syncopy Research. Syncopy Research is a group of financial analysts. We are not receiving any compensation for this article, other than from Seeking Alpha.

    Stocks: AMZN
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