Pacific Crest analyst Andy Hargreaves put out a note this week expressing his optimism regarding Apple's short term outlook. He believes Apple is planning to release a 4.7-inch iPhone 6 this year that could come with an even higher price tag than the iPhone 5S.

Hargreaves expects Apple to sell its first larger-screen iPhone for $299 with a two year contract, which would be $100 above what Apple currently charges for the 5S. At such a price point, the highly-anticipated large-screen iPhone could not only boost sales, but also improve Apple's stagnating profit margins. Given the fact that the iPhone is already Apple's biggest cash cow (see the chart for a breakdown of Apple's estimated 2014 profit), the prospect of improved margins on a top-selling new iPhone will bode well with Apple's shareholders who are keenly waiting for Apple to reignite its stuttering growth engine.