Apple (NASDAQ: AAPL ) is widely expected to release two new iPhone models this fall, reportedly a 4.7inch smartphone and a 5.5inch tablet. There are doubts though whether both the 5.5 inch and 4.7inch models will hit the shelves simultaneously. The rumor mill has also cited the possible delay of the 5.5 inch iPhone release until a few months into 2015.
According to analyst Ming-Chi Kuo of KGI securities, Apple could be facing production delays related to new technology for the device’s in-cell touch panel.
“These problems will likely be even more complicated with a larger size,” he said. Moreover, Kuo doesn’t expect the 5.5-inch sapphire cover front panel ‘will easily pass the drop test near term.’ The most conservative scenario could be that Apple will delay the launch of 5.5inch iPhone model to 2015.
However, Kuo did have some hope that the 5.5inch iPhone could arrive in 2014, but much later than the typical Apple timeframe of September – October with shipments lesser than 15million to 20million.
Kuo’s prediction about the delay in the iPhone launch has been preceded by reports that issues with display technology and battery life could prompt delays.
Many now believe that a shorter supply of iPhone 5.5inch by Apple may be observed. MacRumors from a few weeks ago reported that the phone’s complex manufacturing and increased efficiency required in production before production volume can be increased could lead to lowering of 5.5inch iPhone’s stocks compared the to the 4.7inch model.
The situation of the prelaunch of the bigger iPhone on the whole pulls the attention of many but it’s the introduction of some advanced form factors that the investors should focus on.
Apple admitted in a presentation involving its lawsuit with Samsung that customers have revealed unexpressed demands for bigger iPhones, something the new phones will be able to provide. Apple presented in one of its slides titled “consumers want what we don’t have” that customers were more attracted to devices that were much larger and under the $300 price tag.
It also admitted in another one of its slides that more pressing requirements for cheaper and large screened-smartphones seem to exist in market.
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Brian Marshall, an ISI Group analyst seems to second with Apple on this thought, and believes that the larger iPhone6 models will be able to achieve a rate of 14% upgrade with the current users of the company which, in accordance to his calculations would be greater than the typical quarter rate of 9% upgrade.
The 4.7inch iPhone release is likely to accompany the announcement of 5.5inch iPhone. It is probable that this declaration would keep customers in demand of a bigger iPhone satisfied with this news of the arrival of a larger screen. Investors shouldn’t be too anxious about the release date of the larger iPhone, as the 4.7inch device might as well be the more popular size, and customers seeking a larger phone will wait a few months to get it. Aside from iPhone, this fall Apple may also be releasing a wearable device.
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