Apple's customers don't really care about the new bezel-less screen on the iPhone 8
On Thursday, Apple announced the date of the next iPhone's launch event: September 12.
The flagship feature of the new phone is expected to be an OLED screen that takes up nearly the entire front of the device. Investors are expecting a "supercycle" of phone upgrades because of the new screen and design. But, a new survey from RBC Capital Markets shows that Apple customers don't really care about the fancy screen.
RBC found that customers are much more likely to upgrade their current phones for wireless charging, more memory storage, an improved camera, or a more powerful processor before a new screen. Only 6% of respondents said the bezel-less screen is the most attractive feature rumored to be on the new phone, while 35% said wireless charging was the most attractive feature.
The RBC survey reached 1,138 current iPhone users and found that 65% of them are considering buying the new phone. Many of the respondents last bought an iPhone 1-2 years ago, with 33% of the users surveyed currently using an iPhone 6 or 6 Plus.
The next iPhone is expected to cost more than any of its predecessors, and estimates have hovered around $1,000. Apple is also expected to release an update to the iPhone 7 at the event as well, which will be priced lower than the brand-new model. The higher price might deter some users as only 22% of users surveyed said they would spend more than $800 for their next phone. Only 14% of users would buy the phone outright, with a majority opting for some sort of payment plan through Apple or their wireless carrier.
RBC notes that its survey doesn't cover non-iOS or international users, so total demand might differ based on the intentions of those not surveyed by RBC.
RBC thinks the next iPhone will sell really well, and raised its price target with the release of the survey up by $4 to $180. RBC rates Apple a buy.
The firm also thinks Apple could be the first company to hit a market cap of $1 trillion. Apple is currently worth about $845.69 billion, so it would need a rather large boost to reach a trillion-dollar valuation.
Apple is up 41.51% this year.
