"60% of iPhone users have not upgraded to an iPhone 6, 6s, 6Plus or 6s Plus". Translation: A giant portion of iPhone users is not interested in a bigger iPhone and we left them without an adequate offering for two product cycles in a row. After the niche iPhone 5c this is the second miscalculation concerning the iPhone product line under Tim Cook. Rumors are there will be a new 4inch iPhone this spring. That should help propel sales. I know plenty of people who are still on an iPhone 5 because of the size of the new models.
Hardly a miscalculation when they sold 200+ million in a year.
Notes of interest.
They did phenomenally good given the headwinds.
They broke alltime profitability records in those conditions.
Tim deliberatly mentiond a few times "we a very very confident of a strong future/longer run"
What did wallstreet hear.. Or what do headlines cover... Apple disappointed the street... 75.9 billion vs 76.6billion... Lol....
And that 76.6 is number pull out of anal-ists arsss...
Bewildering .
They sold 75.8 million iphones (breaking all time record in tough conditions) instead of 76 million 200k unit difference from a number pulled out of anal-its arsss again..
Sigh .
I'm just reporting what Tim said. Clearly the expansion of the install base is driven in large part by Android switchers. I think Apple should launch a 4" iPhone with 4.7" specs to capture those who don't want a larger screen. It could be a larger % of the install base than Apple thought.
You are probably right. I really underestimated the strong demand for a 4 inch phone. Apple really needs to make a top end 4 inch phone along with the 4.7 and 5.5 when they release the iPhone 7.
Everyone that thought there was no demand for a 4 inch iPhone were wrong, but that aside, there was never a comparable competitor to the 4 inch iPhone anyway; the competition didn't want to build premium small phones either. It is all just pent up demand there for Apple to tap.
The biggest news in iPad sales are down 25% YOY. I think they are levelling out. I also believe what's hurting iPad sales (relatively speaking) is iPads are overpriced and the product family matrix is confusing. Apple needs to cull old iPads and sell new iPad minis and iPad regulars starting at 32 GB for $299 and $399. And add $99 for 64 GB and $219 for 128 GB.
This would be the agreesive move needed the kickstart sales numbers higher again.
It's a dangerous game competing on price. Apple needs to keep their profit margins up. The iPad Pro helps do that. Anyone who has seen and used on in person immediately wants one.
I'm just reporting what Tim said. Clearly the expansion of the install base is driven in large part by Android switchers. I think Apple should launch a 4" iPhone with 4.7" specs to capture those who don't want a larger screen. It could be a larger % of the install base than Apple thought.
You are probably right. I really underestimated the strong demand for a 4 inch phone. Apple really needs to make a top end 4 inch phone along with the 4.7 and 5.5 when they release the iPhone 7.
Unfortunately I have a feeling this 4 inch phone may be an inferior phone or at least will be six months behind if Apple chooses to release it this spring to try and stem YOY declines. Based on Cook's comments though we won't see this phone in calender Q1 or if we do it will be available late March.
You are probably right. I really underestimated the strong demand for a 4 inch phone. Apple really needs to make a top end 4 inch phone along with the 4.7 and 5.5 when they release the iPhone 7.
Unfortunately I have a feeling this 4 inch phone may be an inferior phone or at least will be six months behind if Apple chooses to release it this spring to try and stem YOY declines. Based on Cook's comments though we won't see this phone in calender Q1 or if we do it will be available late March.
It might be underpowered some but do we really need all the power the current phones have?
Unfortunately I have a feeling this 4 inch phone may be an inferior phone or at least will be six months behind if Apple chooses to release it this spring to try and stem YOY declines. Based on Cook's comments though we won't see this phone in calender Q1 or if we do it will be available late March.
It might be underpowered some but do we really need all the power the current phones have?
Yes. The iPhone uses its speed to smooth out the UI. Crap like responsiveness and fluidity are easy to take for granted, but try using a cheap Android and you'll see what I mean. Stutters, jerks, not smooth, not fluid, slow to respond to touch input, this stuff is very processor intensive. It's also very important in delivering a UI that seems to disappear and become natural, like iOS.
The "miscalculation" right from the very beginning was that they thought it was possible to create a "one size fits all" phone. I understand the cost of setting up and running multiple manufacturing lines is not insignificant - but I think it's finally evident to everyone that the market for each sized phone is now large enough to absorb the cost of multiple assembly lines without significant impact to margins.
In the beginning, the capabilities of the iPhone were so much better than everything else that people lined up to switch to the iPhone even though they would have preferred a slightly larger or slightly smaller device - so a single sized offering at that time in history was probably the right call for Apple. Now however - the people who prefer the smaller phones are not as compelled to give them up and upgrade to the larger 6 and 6s phones because the difference in features is marginal. Plain and simply - Apple does not currently offer a phone that is "perfect" for them and so they are forced to compromise. They have 2 choices within the Apple ecosystem - 1) Keep the size they want (4") and live without the latest features, or 2) Get the phone with the latest features and be forced to carry a phone that is larger than they would prefer. Since the iPhone 5/5s are still very capable phones feature and performance-wise, more people are choosing to continue using it than to sacrifice on size to get the latest features.
At this point in the iPhones life, it's time for Apple to offer its flagship phone in multiple sizes. iPhone 7 nano, iPhone 7 mini, iPhone 7 and iPhone 7 plus in 3.5", 4", 4.7" and 5.5" sizes respectively. All units selling for the same price - and all units equipped with exactly the same features and functionality. The assumption that a smaller phone has to be cheaper and less capable than the larger phones is just plain wrong. If the above lineup actually existed - I, and I'm sure a small number of other people would actually be tempted to purchase multiple phones to carry in different circumstances. I would buy a plus and a nano. I might even add a 5th phone to the lineup called the iPhone 7 pro which would be 5.5" like the plus, but it would cost $100 more and it would be thick enough to triple the battery capacity of the 7 plus. After maintaining the 5 sizes for 2 years (7 and 7s), I'd look at the actual sales numbers and consider dropping the least popular model when releasing the iPhone 8.
The above suggestion is only for the flagship product. Instead of 2 models (7 and 7s), they release 5 models - (7 nano, 7 mini, 7, 7 plus and 7 pro) - all at exactly the same price. The only difference between the 4 base models is the screen size, form factor and battery size.
At the same time, they would of course still offer tiers of older phones at lower prices as they do now. Last years model at $100 off, 2 years old model at $200 off.
Finally providing the choice for a user to get exactly the product they want - without having to sacrifice on features will drive a massive wave of upgrades the first year it is available.
The "miscalculation" right from the very beginning was that they thought it was possible to create a "one size fits all" phone. I understand the cost of setting up and running multiple manufacturing lines is not insignificant - but I think it's finally evident to everyone that the market for each sized phone is now large enough to absorb the cost of multiple assembly lines without significant impact to margins.
In the beginning, the capabilities of the iPhone were so much better than everything else that people lined up to switch to the iPhone even though they would have preferred a slightly larger or slightly smaller device - so a single sized offering at that time in history was probably the right call for Apple. Now however - the people who prefer the smaller phones are not as compelled to give them up and upgrade to the larger 6 and 6s phones because the difference in features is marginal. Plain and simply - Apple does not currently offer a phone that is "perfect" for them and so they are forced to compromise. They have 2 choices within the Apple ecosystem - 1) Keep the size they want (4") and live without the latest features, or 2) Get the phone with the latest features and be forced to carry a phone that is larger than they would prefer. Since the iPhone 5/5s are still very capable phones feature and performance-wise, more people are choosing to continue using it than to sacrifice on size to get the latest features.
At this point in the iPhones life, it's time for Apple to offer its flagship phone in multiple sizes. iPhone 7 nano, iPhone 7 mini, iPhone 7 and iPhone 7 plus in 3.5", 4", 4.7" and 5.5" sizes respectively. All units selling for the same price - and all units equipped with exactly the same features and functionality. The assumption that a smaller phone has to be cheaper and less capable than the larger phones is just plain wrong. If the above lineup actually existed - I, and I'm sure a small number of other people would actually be tempted to purchase multiple phones to carry in different circumstances. I would buy a plus and a nano. I might even add a 5th phone to the lineup called the iPhone 7 pro which would be 5.5" like the plus, but it would cost $100 more and it would be thick enough to triple the battery capacity of the 7 plus. After maintaining the 5 sizes for 2 years (7 and 7s), I'd look at the actual sales numbers and consider dropping the least popular model when releasing the iPhone 8.
The above suggestion is only for the flagship product. Instead of 2 models (7 and 7s), they release 5 models - (7 nano, 7 mini, 7, 7 plus and 7 pro) - all at exactly the same price. The only difference between the 4 base models is the screen size, form factor and battery size.
At the same time, they would of course still offer tiers of older phones at lower prices as they do now. Last years model at $100 off, 2 years old model at $200 off.
Finally providing the choice for a user to get exactly the product they want - without having to sacrifice on features will drive a massive wave of upgrades the first year it is available.
I think you're all crazy
Seriously, though, if 25 People have iPhone 5s's and 100% of them upgrade to a 6 and sell their old phones to Gazelle, 25 will have a 4.7" phone, and 25 will have a 4.0" phone. That will give you a 50% installed based of 4.7 phones, which is the best possible outcome, and not a mandate to make 4" phones! Some, if not a majority, of those 4" phone owners might even prefer a larger phone but cannot afford it. Considering the installed base consists of resold 4's, 4s's, 5's, 5c's, and 5s's, a 40% installed base of larger phones is confirmation of the large phone strategy, not an indictment of it.
What would be more telling is an apples to apples comparison (no pun intended) of new device sales last quarter, if they're still offering a 4" phone.
The "miscalculation" right from the very beginning was that they thought it was possible to create a "one size fits all" phone. I understand the cost of setting up and running multiple manufacturing lines is not insignificant - but I think it's finally evident to everyone that the market for each sized phone is now large enough to absorb the cost of multiple assembly lines without significant impact to margins.
In the beginning, the capabilities of the iPhone were so much better than everything else that people lined up to switch to the iPhone even though they would have preferred a slightly larger or slightly smaller device - so a single sized offering at that time in history was probably the right call for Apple. Now however - the people who prefer the smaller phones are not as compelled to give them up and upgrade to the larger 6 and 6s phones because the difference in features is marginal. Plain and simply - Apple does not currently offer a phone that is "perfect" for them and so they are forced to compromise. They have 2 choices within the Apple ecosystem - 1) Keep the size they want (4") and live without the latest features, or 2) Get the phone with the latest features and be forced to carry a phone that is larger than they would prefer. Since the iPhone 5/5s are still very capable phones feature and performance-wise, more people are choosing to continue using it than to sacrifice on size to get the latest features.
At this point in the iPhones life, it's time for Apple to offer its flagship phone in multiple sizes. iPhone 7 nano, iPhone 7 mini, iPhone 7 and iPhone 7 plus in 3.5", 4", 4.7" and 5.5" sizes respectively. All units selling for the same price - and all units equipped with exactly the same features and functionality. The assumption that a smaller phone has to be cheaper and less capable than the larger phones is just plain wrong. If the above lineup actually existed - I, and I'm sure a small number of other people would actually be tempted to purchase multiple phones to carry in different circumstances. I would buy a plus and a nano. I might even add a 5th phone to the lineup called the iPhone 7 pro which would be 5.5" like the plus, but it would cost $100 more and it would be thick enough to triple the battery capacity of the 7 plus. After maintaining the 5 sizes for 2 years (7 and 7s), I'd look at the actual sales numbers and consider dropping the least popular model when releasing the iPhone 8.
The above suggestion is only for the flagship product. Instead of 2 models (7 and 7s), they release 5 models - (7 nano, 7 mini, 7, 7 plus and 7 pro) - all at exactly the same price. The only difference between the 4 base models is the screen size, form factor and battery size.
At the same time, they would of course still offer tiers of older phones at lower prices as they do now. Last years model at $100 off, 2 years old model at $200 off.
Finally providing the choice for a user to get exactly the product they want - without having to sacrifice on features will drive a massive wave of upgrades the first year it is available.
I think you're all crazy
Seriously, though, if 25 People have iPhone 5s's and 100% of them upgrade to a 6 and sell their old phones to Gazelle, 25 will have a 4.7" phone, and 25 will have a 4.0" phone. That will give you a 50% installed based of 4.7 phones, which is the best possible outcome, and not a mandate to make 4" phones! Some, if not a majority, of those 4" phone owners might even prefer a larger phone but cannot afford it. Considering the installed base consists of resold 4's, 4s's, 5's, 5c's, and 5s's, a 40% installed base of larger phones is confirmation of the large phone strategy, not an indictment of it.
What would be more telling is an apples to apples comparison (no pun intended) of new device sales last quarter, if they're still offering a 4" phone.
Nobody is saying that offering larger phones was a mistake...but many of the people that bought those larger phones would have preferred to stick with the 4" size - and some of them (I personally know 2) would have preferred a 3.5".
Apple offers a great product in iOS - I just wish they would offer it - in all its glory - in multiple sizes so that nobody has to compromise - or worse yet - sit out of an upgrade cycle because the size of the phone they want is not offered this year.
There's no question that it would cost Apple more to engineer and manufacture such a product. They would have to make sure that the "guts" could fit inside a 3.5" device and they would have to maintain and instrument multiple manufacturing and assembly lines...but I think it would be worth it - meaning that they would sell enough additional phones to more than cover the added costs. They took the first step last year by releasing 2 sizes instead of just one - the only mistake I think they made was giving them different prices and slightly different feature sets. I think they should have been priced exactly the same - and they should have both had the optical image stabilization. Different sizes should be thought of the same way different colors are. You're paying for the features and capabilities of the device - not the size or color of it. Sure - Apple will have slightly different margins on the 4 products but if they set the margin at 40% for the model that costs them the most to make - then the margins will be higher on all the others - and that excess can go towards the added cost of running 4 different assembly lines.
- pleeeze issue a fully featured 4 inch and not and artificially dumbed down version. Screen size should not correlate to capabilities. And there seem to be quite a number of people out there that might be waiting for it.
- learn services. As services apparently become more and more important for Apple pls learn how to do them properly. Tidy up some mess around Apple Music, allow account fusioning, improve iCloud. Pls. Sacrifice some margin and have every user backup to the cloud without buying memory first. You know, the good old it just works.
- clean the iPad line up. It's totally unintuitive and I'm not sure they're not too expensive.
The only reason Apple brought iPod to Windows is because the majority of consumers owned Windows PCs. I have a hard time believing there are many Android phone users that want an Apple Watch. And considering a big chunk of iPhone sales right now are Android switchers why give anyone a reason to stay?
I don't know how many of them there will be, but at the same time, even the most ardent Apple fan would have to concede that while Apple have the profits, Android does have the market share in terms of user base.
I concede your point about giving Android users a reason to stay as opposed to switching to iPhone, but you could have made the same argument about the iPod going to Windows.
To me it seems like Apple are seriously limiting their available market by only allowing the watch to work with iPhone, though obviously there is a cost benefit calculation as to whether possibly less Android switchers would be offset by more Watch sales.
The problem with your calculation is that what makes Apple better is integration; if they go and pair with and Android phone, you lose much of this advantage, makes the experience not as good, and debase your own product.
Not to mention now having to support hundreds of configurations.... This would remove focus from their own product.
That market "gained" short term would turn out to be a bad long term deal; like almost all things that go for market share over overall vision.
A big issue in the last two years is not Apple users switching to Android, if anything there is even less palatable on offer there now. But, higher costs due to currency. This is very substantial increase of 40% in the case of the Canadian dollar in just 2 years. That's the difference between replacing every 2 years and waiting 3-4 years to replace. Apple will still get the money eventually, but in the short term volume will be affected until growth in Android switchers (and overall global growth catches up_).
The "miscalculation" right from the very beginning was that they thought it was possible to create a "one size fits all" phone. I understand the cost of setting up and running multiple manufacturing lines is not insignificant - but I think it's finally evident to everyone that the market for each sized phone is now large enough to absorb the cost of multiple assembly lines without significant impact to margins.
In the beginning, the capabilities of the iPhone were so much better than everything else that people lined up to switch to the iPhone even though they would have preferred a slightly larger or slightly smaller device - so a single sized offering at that time in history was probably the right call for Apple. Now however - the people who prefer the smaller phones are not as compelled to give them up and upgrade to the larger 6 and 6s phones because the difference in features is marginal. Plain and simply - Apple does not currently offer a phone that is "perfect" for them and so they are forced to compromise. They have 2 choices within the Apple ecosystem - 1) Keep the size they want (4") and live without the latest features, or 2) Get the phone with the latest features and be forced to carry a phone that is larger than they would prefer. Since the iPhone 5/5s are still very capable phones feature and performance-wise, more people are choosing to continue using it than to sacrifice on size to get the latest features.
At this point in the iPhones life, it's time for Apple to offer its flagship phone in multiple sizes. iPhone 7 nano, iPhone 7 mini, iPhone 7 and iPhone 7 plus in 3.5", 4", 4.7" and 5.5" sizes respectively. All units selling for the same price - and all units equipped with exactly the same features and functionality. The assumption that a smaller phone has to be cheaper and less capable than the larger phones is just plain wrong. If the above lineup actually existed - I, and I'm sure a small number of other people would actually be tempted to purchase multiple phones to carry in different circumstances. I would buy a plus and a nano. I might even add a 5th phone to the lineup called the iPhone 7 pro which would be 5.5" like the plus, but it would cost $100 more and it would be thick enough to triple the battery capacity of the 7 plus. After maintaining the 5 sizes for 2 years (7 and 7s), I'd look at the actual sales numbers and consider dropping the least popular model when releasing the iPhone 8.
The above suggestion is only for the flagship product. Instead of 2 models (7 and 7s), they release 5 models - (7 nano, 7 mini, 7, 7 plus and 7 pro) - all at exactly the same price. The only difference between the 4 base models is the screen size, form factor and battery size.
At the same time, they would of course still offer tiers of older phones at lower prices as they do now. Last years model at $100 off, 2 years old model at $200 off.
Finally providing the choice for a user to get exactly the product they want - without having to sacrifice on features will drive a massive wave of upgrades the first year it is available.
I think you're all crazy
Seriously, though, if 25 People have iPhone 5s's and 100% of them upgrade to a 6 and sell their old phones to Gazelle, 25 will have a 4.7" phone, and 25 will have a 4.0" phone. That will give you a 50% installed based of 4.7 phones, which is the best possible outcome, and not a mandate to make 4" phones! Some, if not a majority, of those 4" phone owners might even prefer a larger phone but cannot afford it. Considering the installed base consists of resold 4's, 4s's, 5's, 5c's, and 5s's, a 40% installed base of larger phones is confirmation of the large phone strategy, not an indictment of it.
What would be more telling is an apples to apples comparison (no pun intended) of new device sales last quarter, if they're still offering a 4" phone.
It would be nice to see figures per device but we know that'll never happen from apple.
Personally I held onto my iPhone 5 an extra year because they dropped the 4" model with the 6/6plus release. If my phone hadn't taken a dunk in the hottub days prior to the 6S release I would still have it now. I picked up a 6S last year and am happy with it but I'd be really tempted to swap it for a 6C/5SE (whatever it may be called) if it materialises and has all the bells and whistles I have with the 6S. 4" was perfect size for me and still feels it when I pick up and handle my dead iPhone5 that resides in a drawer, contemplating getting it repaired.
Personally I held onto my iPhone 5 an extra year because they dropped the 4" model with the 6/6plus release. If my phone hadn't taken a dunk in the hottub days prior to the 6S release I would still have it now. I picked up a 6S last year and am happy with it but I'd be really tempted to swap it for a 6C/5SE (whatever it may be called) if it materialises and has all the bells and whistles I have with the 6S. 4" was perfect size for me and still feels it when I pick up and handle my dead iPhone5 that resides in a drawer, contemplating getting it repaired.
Then you won't be getting a 4" phone this year. Come on, "all the bells and whistles"? That's unrealistic at best. It's like saying you'll get rid of your 6S Plus for a smaller 6S if it has all the same features; when it's obvious the Plus has more features because it's physically larger and can accomodate them. There are going to be some compromises by going smaller, having nothing to do with Apple arbitrarily including or excluding something to hit a price point.
- pleeeze issue a fully featured 4 inch and not and artificially dumbed down version. Screen size should not correlate to capabilities. And there seem to be quite a number of people out there that might be waiting for it.
- learn services. As services apparently become more and more important for Apple pls learn how to do them properly. Tidy up some mess around Apple Music, allow account fusioning, improve iCloud. Pls. Sacrifice some margin and have every user backup to the cloud without buying memory first. You know, the good old it just works.
- clean the iPad line up. It's totally unintuitive and I'm not sure they're not too expensive.
I hate the misconception that the 4" is going to be "dumbed down". Think about who the majority of old iPhones users are and what they actually demand/need in a phone. We are not talking about the bleeding edge customer. In fact, the biggest reason I would upgrade my 5s is merely because I know it's going to eat it sooner or later AND I'm hoping for more battery life. (Oh and Apple Pay would be sweet). End of story. It's not my game machine, so I don't need a super GPU. I don't want the gimmickness of 3D Touch. The thing already takes decent pics, I don't need higher res to eat up my storage.
The bottom line is if you crammed all the features and specs of the latest iPhone 6s into a 4" form, the thing will heat up in your hand AND you will have to give up some serious battery space. What you THINK you want, might not really be what you REALLY want.
You are probably right. I really underestimated the strong demand for a 4 inch phone. Apple really needs to make a top end 4 inch phone along with the 4.7 and 5.5 when they release the iPhone 7.
Unfortunately I have a feeling this 4 inch phone may be an inferior phone or at least will be six months behind if Apple chooses to release it this spring to try and stem YOY declines. Based on Cook's comments though we won't see this phone in calender Q1 or if we do it will be available late March.
If the new 4" iPhone offers A9 SoC, 2GB RAM, VoLTE, Apple Pay, it will sell very well.
I'm just reporting what Tim said. Clearly the expansion of the install base is driven in large part by Android switchers. I think Apple should launch a 4" iPhone with 4.7" specs to capture those who don't want a larger screen. It could be a larger % of the install base than Apple thought.
You are probably right. I really underestimated the strong demand for a 4 inch phone. Apple really needs to make a top end 4 inch phone along with the 4.7 and 5.5 when they release the iPhone 7.
How could you have underestimated it when you were told time and time again by many in here that there was still a strong demand for a 4" iPhone?
Comments
In the beginning, the capabilities of the iPhone were so much better than everything else that people lined up to switch to the iPhone even though they would have preferred a slightly larger or slightly smaller device - so a single sized offering at that time in history was probably the right call for Apple. Now however - the people who prefer the smaller phones are not as compelled to give them up and upgrade to the larger 6 and 6s phones because the difference in features is marginal. Plain and simply - Apple does not currently offer a phone that is "perfect" for them and so they are forced to compromise. They have 2 choices within the Apple ecosystem - 1) Keep the size they want (4") and live without the latest features, or 2) Get the phone with the latest features and be forced to carry a phone that is larger than they would prefer. Since the iPhone 5/5s are still very capable phones feature and performance-wise, more people are choosing to continue using it than to sacrifice on size to get the latest features.
At this point in the iPhones life, it's time for Apple to offer its flagship phone in multiple sizes. iPhone 7 nano, iPhone 7 mini, iPhone 7 and iPhone 7 plus in 3.5", 4", 4.7" and 5.5" sizes respectively. All units selling for the same price - and all units equipped with exactly the same features and functionality. The assumption that a smaller phone has to be cheaper and less capable than the larger phones is just plain wrong. If the above lineup actually existed - I, and I'm sure a small number of other people would actually be tempted to purchase multiple phones to carry in different circumstances. I would buy a plus and a nano. I might even add a 5th phone to the lineup called the iPhone 7 pro which would be 5.5" like the plus, but it would cost $100 more and it would be thick enough to triple the battery capacity of the 7 plus. After maintaining the 5 sizes for 2 years (7 and 7s), I'd look at the actual sales numbers and consider dropping the least popular model when releasing the iPhone 8.
The above suggestion is only for the flagship product. Instead of 2 models (7 and 7s), they release 5 models - (7 nano, 7 mini, 7, 7 plus and 7 pro) - all at exactly the same price. The only difference between the 4 base models is the screen size, form factor and battery size.
At the same time, they would of course still offer tiers of older phones at lower prices as they do now. Last years model at $100 off, 2 years old model at $200 off.
Finally providing the choice for a user to get exactly the product they want - without having to sacrifice on features will drive a massive wave of upgrades the first year it is available.
I think you're all crazy
Seriously, though, if 25 People have iPhone 5s's and 100% of them upgrade to a 6 and sell their old phones to Gazelle, 25 will have a 4.7" phone, and 25 will have a 4.0" phone. That will give you a 50% installed based of 4.7 phones, which is the best possible outcome, and not a mandate to make 4" phones! Some, if not a majority, of those 4" phone owners might even prefer a larger phone but cannot afford it. Considering the installed base consists of resold 4's, 4s's, 5's, 5c's, and 5s's, a 40% installed base of larger phones is confirmation of the large phone strategy, not an indictment of it.
What would be more telling is an apples to apples comparison (no pun intended) of new device sales last quarter, if they're still offering a 4" phone.
Apple offers a great product in iOS - I just wish they would offer it - in all its glory - in multiple sizes so that nobody has to compromise - or worse yet - sit out of an upgrade cycle because the size of the phone they want is not offered this year.
There's no question that it would cost Apple more to engineer and manufacture such a product. They would have to make sure that the "guts" could fit inside a 3.5" device and they would have to maintain and instrument multiple manufacturing and assembly lines...but I think it would be worth it - meaning that they would sell enough additional phones to more than cover the added costs. They took the first step last year by releasing 2 sizes instead of just one - the only mistake I think they made was giving them different prices and slightly different feature sets. I think they should have been priced exactly the same - and they should have both had the optical image stabilization. Different sizes should be thought of the same way different colors are. You're paying for the features and capabilities of the device - not the size or color of it. Sure - Apple will have slightly different margins on the 4 products but if they set the margin at 40% for the model that costs them the most to make - then the margins will be higher on all the others - and that excess can go towards the added cost of running 4 different assembly lines.
- pleeeze issue a fully featured 4 inch and not and artificially dumbed down version. Screen size should not correlate to capabilities. And there seem to be quite a number of people out there that might be waiting for it.
- learn services. As services apparently become more and more important for Apple pls learn how to do them properly. Tidy up some mess around Apple Music, allow account fusioning, improve iCloud. Pls.
Sacrifice some margin and have every user backup to the cloud without buying memory first. You know, the good old it just works.
- clean the iPad line up. It's totally unintuitive and I'm not sure they're not too expensive.
Not to mention now having to support hundreds of configurations.... This would remove focus from their own product.
That market "gained" short term would turn out to be a bad long term deal; like almost all things that go for market share over overall vision.
I
But, higher costs due to currency. This is very substantial increase of 40% in the case of the Canadian dollar in just 2 years.
That's the difference between replacing every 2 years and waiting 3-4 years to replace.
Apple will still get the money eventually, but in the short term volume will be affected until growth in Android switchers (and overall global growth catches up_).
Personally I held onto my iPhone 5 an extra year because they dropped the 4" model with the 6/6plus release. If my phone hadn't taken a dunk in the hottub days prior to the 6S release I would still have it now. I picked up a 6S last year and am happy with it but I'd be really tempted to swap it for a 6C/5SE (whatever it may be called) if it materialises and has all the bells and whistles I have with the 6S. 4" was perfect size for me and still feels it when I pick up and handle my dead iPhone5 that resides in a drawer, contemplating getting it repaired.
The bottom line is if you crammed all the features and specs of the latest iPhone 6s into a 4" form, the thing will heat up in your hand AND you will have to give up some serious battery space. What you THINK you want, might not really be what you REALLY want.