Analyst Sees Two New iPhones This Summer, Could Spur Massive Upgrade Cycle

ISI Group believes Apple's (NASDAQ: AAPL) new iPhone may spur the “mother lode” of upgrade cycles.

Brian Marshall, analyst at ISI Group, points to two new iPhones, which will have 4.7 and 5.5 inch displays. The analyst believes Apple's lack of large-screen iPhones may have been the company's biggest product misstep.

Apple has never released two radically different iPhones at the same time.

Marshall expects the current upgrade rate of nine percent to increase into the 12 to 14 percent range in the second half of 2014.

The analyst reiterated a Strong Buy rating and $600 price target.

Shares of Apple are up 0.59 percent to $527.78.