Apple 'leaving money on the table' by not releasing big-screen iPhone

Posted:
in iPhone edited January 2014
Calls for Apple to make an iPhone with a larger display around 5 inches diagonally are growing among investors, who see a big-screen iPhone as a major revenue opportunity.

iPhone Plus
Mockup of iPhone with 4.94-inch screen, created by Marco Arment.


A pair of prominent analysts this week issued reports calling on Apple to release a so-called "phablet," positioned between a smartphone and a tablet. Such a device would allow Apple to compete with Samsung's popular Galaxy Note series, and to stay in step with the rest of the smartphone industry, which is trending toward larger handset displays.

Shaw Wu of Sterne Agee admitted that big-screen Android phones have been a greater success than he and others expected. He also cited supply chain data, which suggests Samsung plans to release a new flagship device, the Galaxy S4, in April with a 5-inch touchscreen.

"We believe AAPL is leaving money on the table by not participating in larger touchscreen form factors," Wu wrote in a note to investors. "But more importantly, we believe AAPL needs to reclaim high-end leadership as that is what brand is about. Sure, iOS, iTunes and the App Store are great, but it is clear that many customers want larger screens."

Joining Wu this week in calling for an iPhone with a bigger display was Ben A. Reitzes of Barclays. He believes that sales of "phablets" with screen sizes greater than 5 inches will catapult from 27 million in 2012 to 230 million in 2015.

Reitzes believes Apple could launch a 5-inch iPhone in its lineup at the end of this year or in early 2014. He predicts a 5-inch iPhone would offset some of the average selling price declines Apple would see from an anticipated low-cost iPhone for emerging markets.

Last week, Marco Arment, developer of Instapaper and The Magazine, offered an explanation of how Apple could build a so-called "iPhone Plus" without creating a new resolution for developers to support. He suggested Apple could release an iPhone with a 4.94-inch diagonal display with the same 640-by-1,136-pixel resolution as the current iPhone 5.

At that resolution, the "iPhone Plus" screen would have a screen density of 264 pixels per inch. Arment also noted "significant demand" for larger handsets like the Galaxy Note.

"The iPhone has lost a significant number of sales by buyers either wanting a larger screen or being drawn to how much better the large screens look in stores," he said.
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Comments

  • Reply 1 of 318
    anonymouseanonymouse Posts: 6,558member


    "Leaving money on the table." "Decreasing margins." Can't they make up their minds about what they want?


     


    Apple, of course, would do best to just ignore them.


     


    And, does anyone actually have any hard numbers on how many phablets have been sold, and where? Sold, not shipped.


     


    At 230 million a year, he's arguing that phablets will become the norm in smartphone sales. Baseless conjecture.

  • Reply 2 of 318
    herbapouherbapou Posts: 2,199member
    anonymouse wrote: »
    "Leaving money on the table." "Decreasing margins." Can't they make up their minds about what they want?

    Apple, of course, would do best to just ignore them.

    If apple doesnt have a big screen when my contract expires, i am buying a nexus phone. And i am not alone
  • Reply 3 of 318
    Well, if people want big screen phones, why not just add phone features to iPad Mini?
  • Reply 4 of 318
    frankiefrankie Posts: 362member


    The phone is fine.  If you want something bigger get a tablet.  Seriously who wants to carry something that big?  I think the iphone 5 is perfect combination of both.

  • Reply 5 of 318
    allenbfallenbf Posts: 993member

    Quote:

    Originally Posted by winstein2010 View Post



    Well, if people want big screen phones, why not just add phone features to iPad Mini?


     


     


    You beat me to it by 2 minutes :-)  Add call options to the mini and ipad, and boom:  "Problem" solved.

  • Reply 6 of 318
    allenbfallenbf Posts: 993member

    Quote:

    Originally Posted by herbapou View Post





    If apple doesnt have a big screen when my contract expires, i am buying a nexus phone. And i am not alone


     


    I'll be the first to admit that the Nexus 4 is a lovely bit of design.  In my opinion it's the first (and only) Android phone worth taking a second glance at.  I don't think it's enough to make me leave the Apple ecosystem but I confess, I'd love to play with a Nexus 4 for just a few days...

  • Reply 7 of 318
    I've had nothing but iPhones since 2007, but I have to say when I held my friends Galaxy SIII I was a bit jealous of that large screen.
  • Reply 8 of 318
    rob53rob53 Posts: 1,834member

    Quote:

    Originally Posted by herbapou View Post





    If apple doesnt have a big screen when my contract expires, i am buying a nexus phone. And i am not alone


     


    Quote:

    Originally Posted by winstein2010 View Post



    Well, if people want big screen phones, why not just add phone features to iPad Mini?


    herbapou, this is your choice and if it works for you, fine. Go ahead and buy a Nexus and have fun. Nobody is forcing you to buy an Apple device.


     


    winstein2010, I agree Apple could do that but why should they? The iPad mini is still too large to fit in people's pockets, which I bet is the primary location people carry them. I have no idea where people carry those huge Android phones or phablet (stupid name). Of course, those analysts probably wear suits (never trust suits) so they can carry them in their coat pockets. 


     


    I really wish these analysts would get a life. I have an iPhone and it does what I need it to do while away from my computer at home. My wife has an older iPhone and an iPad. She actually uses the iPad more than her iPhone but as a woman, she is used to carrying around a shopping bag size purse (this is not sexist, it's an observation). If her iPad had the phone part of its cellular connection enable, she might use it as a phone but that would mean she'd have to carry it with her all the time, which she doesn't. This is why having the appropriate tool for the job (iPhone and iPad) is better than having a one size fits all tool (phablet).

  • Reply 9 of 318


    I have a Samsung Galaxy Note II.  There is no way I am going back to a < 5" smartphone.  It is true that the phablets may be too big for some people, but for me the larger screen is great for videos and apps and easier softkey typing, and IMHO not being able to "one hand" the phone all the time is a minor inconvenience to pay for that.  I keep in in a holster on my belt, which is larger than any of my previous holsters, but it isn't too big and works great for storing the Note II on my person.  Tablets are great, I have 10.1" one too and I've seen my Dad's 7" nook tablets, but they are too big to keep on your person unless you are a woman with a handbag.  I can keep the Note II in my pocket if I wanted to, But I prefer the holster so the keys and coins in my pocket don't go scratching it.

  • Reply 10 of 318
    IMO, you could question the idea that phablets have that big of a growth curve. They seem more like a bridge product that exists primarily for people who don't already own a tablet or think that tablets are currently too heavy. iPad mini has already made quite a bit of progress on that second part.
  • Reply 11 of 318
    plagenplagen Posts: 151member


    Huge screen phones is a fad, pure and simple. It will disappear the way of sagging clothing.

  • Reply 11 of 318
    gatorguygatorguy Posts: 18,462member


    So according to the AI articles there's increasing calls from investors and analysts for Apple to chase Samsung's strategy of including lower price point smartphones along with high-end phablets in their model line. 


     


    Huh.

  • Reply 13 of 318
    saareksaarek Posts: 1,029member

    Quote:

    Originally Posted by herbapou View Post





    If apple doesnt have a big screen when my contract expires, i am buying a nexus phone. And i am not alone


     


    I’m genuinely curious as to why you want a phone with a bigger display? Everyone I have seen with a large Android device pressed against their heads looks like absolute twats. I can understand wanting a bigger display for content such as games/books/movies etc but then why wouldn’t you just get an iPad?


     


    Apple has explained why they went for the 4” display, it’s the biggest they could go and still maintain one handed operation.

  • Reply 14 of 318


    That's right!


     


    2880*someting for a 326ppi iPad 9.7"


    Current iPad resolution for a 326ppi mini


     


    Current iPad resolution for a 500something ppi new 5inch iPhone (iPhone X)


    updated iphone 5s


     


    that's it... then all analysts would shut up.


     


    Oh no, while at it, give us the option to install bootcamp for iOS, so we can use windows and android!


    Oh no, while at it, stop making macs. Apple only makes more money from macs than all OEMs from pcs together... who cares about that?


     


    Then, all analysts would shut up.


    Oh no!!! while at it, a low cost iPhone, 15 billion net profit per quarter and the best brand "name" that stands for premium and quality isn't enough.

  • Reply 15 of 318
    No.
  • Reply 16 of 318
    ruel24ruel24 Posts: 432member

    Quote:

    Originally Posted by herbapou View Post





    If apple doesnt have a big screen when my contract expires, i am buying a nexus phone. And i am not alone




    Nope. I'm considering it too. I had high hopes for the iPhone 5, but was disappointed that it wasn't a bigger screen. My old eyes can't see so good, these days, and I'm not whipping out reading glasses evertytime I have to look at my phone. My iPhone is becoming harder to read for me. It's a shame, because I really, really love my iPhone. I just need something with a bigger, more easily read screen.

  • Reply 17 of 318

    Quote:

    Originally Posted by herbapou View Post





    If apple doesnt have a big screen when my contract expires, i am buying a nexus phone. And i am not alone




    See you in 18 month, when you're back from Samsung!

  • Reply 18 of 318
    NO NO NO! I don't want a brick up against my head as I talk. This is like technology going backward. Give me a smaller phone instead.
  • Reply 19 of 318


    Completely agreed with the article.  If Apple cannot compete with innovation, the strategy has to be changed.  Let's see if Tim Cook can adapt to the new game plan.

  • Reply 20 of 318




    Reitzes believes Apple could launch a 5-inch iPhone in its lineup at the end of this year or in early 2014. He predicts a 5-inch iPhone would offset some of the average selling price declines Apple would see from an anticipated low-cost iPhone for emerging markets.

     


    So this analysis is based on an assumption that these guys are now just taking as fact. When did we get confirmation that Apple is making a low-cost handset for emerging markets? When did it become fact that Apple's margins were declining because of this low-end product launch.


     


    These analysts need to get out from behind their computer screens and add some subjective analysis to what their number crunching tells them

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