rogifan_old

Services are going to matter more than ever now. I wish Tim would bring someone in that could really improve that part of the business. I don't think Eddy Cue is that guy.

sog35 said:

rogifan_old said:

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.

I think there are four things driving iPhone:

1. Longer replacement cycles as smartphones have become good enough and improvements are now largely incremental.
2. Higher prices due to FX impacting demand
3. Apple perhaps overestimating the % of the install base that wanted larger screen iPhone
4. Intangible; some people just don't like the 6 series for whatever reason

I think there are four things driving iPhone:

1. Longer replacement cycles as smartphones have become good enough and improvements are now largely incremental.
2. Higher prices due to FX impacting demand
3. Apple perhaps overestimating the % of the install base that wanted larger screen iPhone
4. Intangible; some people just don't like the 6 series for whatever reason

dasanman69 said:

rogifan_old said:

On the conference call Tim said 60% of the install base has not yet upgraded to the 6 series phones. That seems awfully high at this point.

There are still a lot of iPhones 5/5s/5c out there. Many in the hands of the second owner plus all those that don't like the larger size form factor. 

I think it would be smart for Apple to release a 4" phone with 4.7" specs. Have three sizes for the flagship device like they do with iPad.