Deutche Bank has declared a "Buy" rating for Apple Inc shares due to the company's dominance in the smartphone and tablet market. The bank is also optimistic about Apple's launch of a bigger iPhone expected in the second half of 2014.

Apple Inc was given a price target of $650 by Deutche Bank analyst Sherri Scribner. According to reports, the price target may be representative of a 23 per cent increase to the closing price of Apple stock on April 9 which was $530.32. The favourable rating was based on Apple Inc's leading position in the smartphone and tablets market despite the popularity of cheaper Android devices.

In a recent survey by comScore, Apple Inc remains the biggest smartphone vendor in the U.S. with 41. 3 per cent compared to Samsung's 27 per cent. Apple may have seen its lead over Samsung become smaller. However, the trend becomes part of the usual ebb and flow of the product cycle.

Apple Inc's market share in the U.S. smartphone market has remained between 40 to 41 per cent. The company has held the same range since July 2013. Google's Android OS is leading with a market share between 51.5 per cent and 52.4 per cent. However, according to recent reports, Apple Inc is the most popular smartphone brand among U.S. teens.

According to the Deutche Bank analyst, Apple Inc products are the "gold standard" in the growing market of smartphones and tablets. Apple's new and future products are expected to be drivers of long-growth for the company.

Based on Scribner's assessment, aside from the possible launch of an iWatch and Apple TV set, Apple Inc might venture into the "smarthomes" segment much like Google's Nest. The company has always aimed to "surprise and delight" its customers. If Apple will release new products that will be big hits in the consumer market, the success will only add to the company's "above-market growth rates." Deutche Bank's $650 price target is based on a multiple of 14 times the predicted earnings per share of $46.50 for FY 2015.