Apple Acknowledges Consumers Want Larger and Cheaper Phones

penter said:

I think we're beginning to see the era where Apple is no longer an innovator, but a mere competitor...

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Right, cause big screens and making stuff cheap is innovative.

Not the 64-bit, legit desktop class, CPU
Not the Touch ID that works seamlessly and had competitors scrambling to add it to their phones
Not the Mac Pro

Now! That's not innovative indeed.

No, don't get me wrong. I think some android companies are innovative. Samsung is not one of them.

I suppose you can count me in the minority. I want a phone with all the latest
features and CPU, but the size of an iPhone4. My iPhone5 is even larger than I'd really like. I understand some folks want a large screen, but for me (and many others), we want something that easily fits in our pockets, yet has all the features. If one needs something larger, that's what the MBA or iPad is for.

pedromcm.pm said:

Microsoft loses relevance, Google makes nothing new, and almost every OEM is closing the front door?

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I stopped reading there.

in all honesty:

smartphones are mature since some time now. what do you do in a market that is mature? you differentiate! I've been crying this for a few years now. there is NO reason why apple should not have a range of iphones. just like they have in the other product lines.

get with the f'''ing program apple!

Interesting that >$300 market is more than half of the <$300 one. Which means the iPhone can stay expensive and be chilled w good money and less production runs. Thus, keeping it a must want that not everybody can own device.

JayCee842 said:

Where have you been the past decades? I've been following Apple just recently (when I was in high school in 2010-2011) and I'm aware they've been seen as the top innovative company since they began.

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Huh? Every time Apple does something usually the first thing I see here (and elsewhere) is how someone else already did something just like it. It seems only since Steve died are people throwing out the innovation card as revisionist history that Apple was innovating left, right and center when he was running the show.

To be honest, they're at the point where they no longer need to innovate. What's the point in pouring millions into R&D, marketing, and taking risks when other companies will just come along and enter the market within a year. Why not just sit back, see what the industry does and follow suit, relying on their marketing skills?

Of course, Apple historically hasn't been that kind of company, and it would be horrendous for everyone if they did, but why not?

brendu said:

Unless they don't offer a choice. If you want the new iPhone you are probably going to be forced to get a bigger iPhone.

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I don't think we should prejudge a bigger iPhone before the product is released. If the ergonomics work I don't care if they increase the screen size.

What I don't want to see happen is the smaller phones getting slower internal components. Those of us who want a more compact device should have access to the latest tech in a big device. Too many other manufacturers dumb down their "mini" version of the flagship device.

And the race to the bottom has begun!

Apple is just like any other large company that buys the tech startup when it's far enough along and takes it in house to perfect it for their needs.

I will buy a IPhone 6 if it isn't over 5". Those phones my family and friends carry around are way too big for me personally.

Just keep offering the 4" size as an option. I don't want some miniature cutting board in my pocket. In fact, I'd like something that WILL FIT in my pocket, and not be so damn big.

JayCee842 said:

If they end up listening to the market, then they'd be facing the "innovators dilemma" which Jobs (I believe highlighted as a favorite book). It's not about giving consumers what they want. Apple will fall behind listening to their customers' needs.

Edit: Apple can't get caught up in current needs. It needs to look to the future.

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This may well be the fatal flaw in Tim Cook as CEO. That slide is very concerning with the emphasis on "market needs / wants".

Maybe he will favorably surprise me in 2014 and finally unleash the new product category pipeline of innovation.

Or maybe he will not.

In either case, we will know soon as 2014 is now 25% over.

forcesteeler said:

Apple has almost $200 Billion Dollars in its bank account. Its time to use some of that money and release some new products (New Industry's). Waiting Year after Year for something new is frustrating. Im tired of the same old New iPhone 27. Where is the 4K TV? the iWatch? how about a video game console, Game Industry makes a lot of money.

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Sure, the game industry makes a lot of money. But you don't need to look much further than Sega to see that only three major TV consoles can exist at once. Xbox and PS4 would not be threatened by Apple entering the mix. Unfortunately Nintendo is struggling with the Wii U and need to come up with something new for Game Boy.

Personally I hope Apple offers choices in screen size. I like one-handed use (been trying on my new iPad mini and it just doesn't work...), and bigger brings more risk of Apple picking.

Or they could do some crazy innovation. I'm still waiting on the thumb and pinky phone chips that are imbedded in your finger tips . Then you have your phone everywhere and you have your tablet for a bigger screen.

pedromcm.pm said:

So who is innovating? Why is Apple somehow "forced" to innovate when they are making 13 billion $ (net profit) each quarter, and Microsoft loses relevance, Google makes nothing new, and almost every OEM is closing the front door?

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These companies are forced to innovate because otherwise their competitors will "out-innovate" them and force them to play catch-up or even make their products completely obsolete. The examples of Nokia, RIM ecc... should have taught the lesson pretty well.

Max(IT) said:

Bigger screen and less money ... Will Apple change something ?
I'm quite sure about the bigger screen, but what about prices ?
A 5.5" iPhone 6 could be beautiful, but if it will cost 800$ how many they are going to sell ?

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Especially as American carriers are moving to the unsubsidized model like the rest of the world. Hey! We agreed again!!

This might be more newsworthy if it was, say, an email from Schiller to Cook. Apple is doing competitive analysis all the time (just like any other company). Here's one on tablets from summer 2011.

http://docs.justia.com/cases/federa...e/5:2011cv01846/239768/1322/16.pdf?1343373641

penter said:

I think we're beginning to see the era where Apple is no longer an innovator, but a mere competitor...

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And they may have to start imitating what the others have been doing for years now.

People constantly argue what size is the best. It's an impossible argument because there is no such thing as the best size for a smartphone. Just like there's no perfect size for a laptop or tablet.

Apple should, and will, develop multiple sizes for their consumers. My prediction is this:

2014:
- Apple releases the iPhone 6 (4.7")
- Apple releases the 6C (5s internals, no fingerprint)
- Apple releases continue to sell the 4s (aka iPad 2 of the iPhone world)

This gives you three different iPhone sizes for your consumers, while keeping margins high with the still capable 4s.

2015:
- Apple releases the iPhone 6s (rinse and repeat with other s designs)
- Apple releases iPhone 6SC (lol?). The iPhone 6C with iPhone 6 internals
- Apple releases iPhone Nano. A ridiculously thin / small smartphone w/ 3.5" screen.

We'll see how close I am

Please Apple, come up with a proper solution to prevent fragmentation between the 4-5 different screensizes, it's annoying enough as it is.

More junk on the way.

Serelus said:

Please Apple, come up with a proper solution to prevent fragmentation between the 4-5 different screensizes, it's annoying enough as it is.

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Apple has been investing a lot of effort on iOS into layout technologies (autolayout anybody?) I imagine that one reason for this shift is that they see a lot of new screen sizes in the future.

Carlanga said:

Interesting that >$300 market is more than half of the <$300 one. Which means the iPhone can stay expensive and be chilled w good money and less production runs.

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What is the significance of the $300 break point? It looks like a figure chosen to justify not producing a lower cost handset. Would have been interesting to see the market growth for the sub/plus $450 sectors, ie the price of the 4s.

roland.g said:

The phone that came out in 2007 will be 8 years old in 2014. The math isn't that complex.

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Exactly. 14-7=8.

penter said:

I think we're beginning to see the era where Apple is no longer an innovator, but a mere competitor...

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You're extrapolating too much from a slide posted by a mid/low level sales guy bro. It's only been a myth that Apple didn't look at customer's preferences.

Cant wait to see the sales pitch for a bigger screen.
"The next big thing". (4.7" and still smaller than the average 5" smartphone)