Apple Inc. (NASDAQ:AAPL) is set to snatch share from Samsung Electronics Co. Ltd. with the upcoming release of the iPhone 6, Daniel Niles, founding partner of Alpha One Capital Partners, said in an interview on CNBC.
The comment from the Apple Inc. (NASDAQ:AAPL) investor comes as the Cupertino, California-based giant is widely expected to launch its iPhone 6 in an event it has scheduled for September 9.
According to Niles, the launch of the next iPhone will be one of the company’s biggest product release cycles. Owing to this, the behavior of the iPhone-maker’s stock may be different this time, he added.
Niles said that the company has a pretty consistent trading pattern. He noted that the stock outperforms the overall market by about 10% to 20% in the couple of months the company has until its product launches. Unfortunately, Niles added, the stock under-performs for about a month or two months after its launches.
“[…] This, in my opinion, is the best product that they have had since the [iPhone] 4 or [iPhone ] 4s which is when they introduced the two cameras on the front and rear […] in 2010. So, I think that will drive a big upgrade cycle because you are going to get a better phone. I haven’t upgraded for three years and I think there are a lot of other people who have been waiting for a compelling reason to move [and] I think this will give it,” he said.
Furthermore, the investor said that Apple Inc. (NASDAQ:AAPL) may also introduce other services for the future. Niles also said that it was unfortunate that the company’s former CEO, Steve Jobs, passed away which explains the relatively below-the-usual performance of the company.
As for its competition with Samsung Electronics Co. Ltd., the next Apple Inc. (NASDAQ:AAPL) iPhone will see the company getting more share because about 40% of the installed user base of the iPhone-maker has an iPhone 4S or older, Niles said. He added that these people are waiting for a reason to upgrade and the next iPhone will give them the reason to buy a new iPhone, particularly in terms of screen size. The company is expected to debut two versions of the iPhone 6, a smaller iPhone with a 4.7-inch display and a larger iPhone with a 5.5-inch display.
Apple Inc. (NASDAQ:AAPL) investors includes David Einhorn‘s Greenlight Capital. The firm reported about 9.45 million shares in the iPhone-maker by the end of the first half of 2014.
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