Beware of Today’s Latest Apple Inc. (AAPL) Rumor

In a research note from Topeka Capital Markets’ Brian White (via BGR), who currently holds a $1,111 price target on Apple Inc. (NASDAQ:AAPL) shares, it appears that the actual phone that TNW’s story may be speculating about is the iPhone 5S.

White says “the next iPhone (i.e., likely called the iPhone 5S) that we currently believe will be launched in May/June with certain supply production starting in March/April,” adding that “Our checks indicate that the next iPhone will have more choices for customers […] This entails an expansion in both the color patterns and screen sizes.”

While we’ve all been waiting for more color options on the iPhone for quite some time, his latter prediction of multiple screen sizes is intriguing. On the subject, he had this to say:

“Our checks are also indicating that the next iPhone will offer customers more choice in terms of screen size. […] Although Apple offers a 4-inch screen on the iPhone 5 and a 3.5-inch screen on the iPhone 4S and iPhone 4, the Company has never offered multiple screen sizes for a single model. We believe this is about to change with the next iPhone offering different screen sizes that we believe will allow Apple to better bifurcate the market and expand its reach.”

As BGR mentions, White also believes that “multiple screen sizes could allow Apple to better address emerging markets with a lower-cost iPhone.” As we’ve discussed before, emerging markets give Apple Inc. (NASDAQ:AAPL) its best “growth opportunity,” and a cheaper smartphone targeted at these areas is important for the company.

While predictions of a TV or a smart watch are obviously flashier, an iPhone 5S with greater variety may do the most for Apple’s bottom line. Typically, Apple’s iPhone generates close to two-thirds of its profits (see The Real Reason You Should Be Buying Apple).

Let us know your thoughts in the comments section below, and for more Apple Inc. (NASDAQ:AAPL) coverage, continue reading here, at Insider Monkey:

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