Wednesday, March 9, 2016

Here’s Why Apple Would Release a 5.8" iPhone

Taiwanese publication, DigiTimes, reported yesterday that Apple Inc. (NASDAQ:AAPL) could upsize its iPhone line even more. The tech company is expanding the size of iPhones to 5.8-inches, whereas the iPhone 6s Plus measures 5.5-inches. As per rumors, the iPhone may launch in 2018, or earlier in 2017.

Subsequently, rumors have also pegged the device to have an OLED display, and that Samsung was investing $7 billion into readying OLED screens for future iPhones. Reports suggest that Apple will make the shift to OLED in either 2017 or 2018. The DigiTimes report also states that 50 million of these new iPhones could make their way to customers, in the first year of availability.

Will a Larger, More Expensive iPhone Prevent Apple's Sales Decline?

Apple's iPhone experienced its first flat growth numbers since the 2007 launch, as the standalone smartphone market has reached saturation point. Amidst a global economic slowdown, Apple managed to rake in $18.4 billion in profit in the last quarter alone.

The company managed to sell 74.78 million iPhone units in the last quarter, compared to the 74.5 million units shipped last year in the same period. Moreover, Wall Street expected sales to go upwards of 76.5 million units, which didn't happen.

Since the holiday quarter did not help restore investor confidence, CEO Tim Cook is making sure Apple covers all bases for the future. A 5.8-inch OLED iPhone will obviously be expensive. In case the smartphone releases in 2017, it could join the "S" variant of iPhones for that year.

However, in case Apple decides to push the launch date to 2018, it will then be the flagship device of the year. Apple has been loyal to LCDs for a long time now, thus the transition to OLED will not be easy. The panels are expensive and have a shorter life span.

OLEDs suffer from a problem called "Burn In" which degrades the pixel density of screens overtime. If Apple has resolved this issue, then it could mean an iPhone screen with more vibrant colors and a better quality screen.

As per Apple Insider, the iPhone's average selling price (ASP) this time around touched $690.50, while it was $687 around the same time in 2014. This means that Apple's new 5.8-inch iPhone will lead to an even higher ASP, which will help the company attain more revenues and profits in an uncertain smartphone market.

Is a 5.8-inch iPhone Pro the Answer?

No, we don't think a 5.8-inch iPhone is the answer to Apple's woes. The company should focus on its main products and make the best out of them. While there's nothing wrong with switching to OLED panels from LCDs, a 5.8-inch iPhone is unnecessarily big. A rumor by MacRumors looks at the possibility of Apple mimicking Samsung, and offering an Edge screen phone. While we have no doubt that Apple can make the edge experience better, we honestly don't need it.

There are mixed reviews from users on MacRumors forums. While some are optimistic that Apple will make a stellar phablet phone, others think it's just another ugly iPhone. Some are pointing out that Samsung is the real innovator in the market, when it comes to OLED screens. However, something that everyone hopes is a smaller bezel, which will be welcomed by us as well. Considering all these things, it's too early to tell whether Apple can pull this off. The release of the iPhone 7 this September will pave the way for the next-generation iPhone, and only then can we decipher how Apple intends to go about a 5.8-inch iPhone in 2017 or 2018.

Will We See a Virtual Reality Headset with a 5.8-inch iPhone?

It's possible. Previous rumors have stated that Apple has serious ambitions about virtual reality (VR). Even Mr. Cook stated that the industry is not just a niche, and that Apple has every intention of entering it. Currently, a VR headset may not complement any Apple product. However, for a truly immersive experience, a 5.8" OLED iPhone could do the trick.

Apple currently doesn't have the hardware capabilities to support VR. However, the new phone will be able to run VR with ease. Subsequently, technology such as VR will complement the hardware. This will help Apple keep selling iPhones the way it is; however, next year around it will be able to sell a VR headset along with it, which should help it rake in more revenues and profits.


Source: Here's Why Apple Would Release a 5.8" iPhone

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