iPhone 4S or iPhone 5, What's the Difference; Apple (AAPL) Will Continue to Kill It - Goldman Sachs

Analysts at Goldman Sachs said yesterday's iPhone announcement from Apple (Nasdaq: AAPL) disappointed only in the name.

On Tuesday Apple released the iPhone 4S instead of the iPhone 5, which didn't sit well with some investors. However, Goldman said, "while there was some disappointment that Apple did not label the new device the "iPhone 5" and the form factor did not change, we believe the underlying hardware functionality improvements were quite substantial."

Goldman also said with iCloud, iOS 5 and the "surprisingly intriguing" Siri virtual assistant the market is "underestimating the importance of Apple's latest platform enhancements."

The firm believes the company's revenue and profit momentum continues "unabated" and estimates should continue to rise despite macro risks.

They said shares should outperform in anticipation of a holiday season that
"should benefit from pent-up demand for the newly launched iPhone, iPad shipments that are unfettered by supply constraints, and substantial platform improvements such as iCloud."

The firm reiterated their Conviction Buy List rating and $520 price target.

For more ratings news on Apple click here and for the rating history of Apple click here.

Shares of Apple closed at $372.50 yesterday.

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