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Old Jun 24, 2014, 06:52 PM   #1
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Optical Image Stabilization May Be Differentiating Factor for 5.5-Inch iPhone 6 [Updated]




Rumors have suggested Apple's next-generation iPhone may include camera improvements in the form of optical image stabilization with modules produced by sensor company InvenSense, but according to a new prediction from Pacific Crest Securities analysts John Vinh and Kevin Chen, optical image stabilization may be a feature limited to just the larger 5.5-inch iPhone.

Citing a cost premium of $4 to $5 for optical image stabilization over traditional auto focus solutions, the two analysts believe that Apple will use the feature as a differentiating factor between the 4.7-inch iPhone and the more premium 5.5-inch iPhone.
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We believe the 5.5-inch iPhone 6 smartphone camera will support optical image stabilization (OIS) and anticipate that it will represent one of several opportunities at Apple that will benefit InvenSense. In our analysis, we believe Apple chose to only include OIS camera technology in the larger iPhone 6 given that there is still a significant cost premium ($4 to $5) over standard auto focus solutions and that it provides a point of differentiation between the 4.7-inch iPhone 6 and the step-up model (5.5-inch)
Optical image stabilization (OIS) is designed to reduce shake and stabilize photos and videos using either a lens with built-in stabilization or a separate sensor. In the past, this has been limited to traditional digital cameras, but recently, cell phone manufacturers like Google, HTC, Nokia have been incorporating OIS systems in order to improve photo quality. Currently, the iPhone 5s uses software-based image stabilization techniques, which are seen as inferior to OIS.

Comparison image courtesy of Electronics 360

Apple aims to improve photo quality with each iteration of the iPhone, so new image stabilization techniques make sense for the next-generation phone. The company also has a history of limiting features to its flagship offering, such as Touch ID for the iPhone 5s, and it appears that the 5.5-inch iPhone may be the higher-end 2014 model. Rumors have suggested that the 5.5-inch iPhone 6 might include a $100 price premium over the 4.7-inch version and that it might be the only model to receive a sapphire crystal screen.

Along with optical image stabilization for the larger 5.5-inch iPhone, Chen and Vinh are also "increasingly confident" that the iPhone 6 will support NFC, based on supply chain conversations. This is in line with previous rumors that have suggested NFC may finally be deployed in the iPhone 6 ahead of an upcoming mobile payment solution.

While it was initially thought that Apple's 4.7-inch iPhone 6 would launch first due to manufacturing issues with the 5.5-inch version, it seems Apple may have solved those problems. A report from Bloomberg earlier this week has suggested both the 5.5-inch and 4.7-inch iPhones may launch simultaneously later this year.

Update 5:15 PM PT: KGI Securities analyst Ming-Chi Kuo is also predicting the larger 5.5-inch iPhone will be the only model to offer optical image stabilization due to supply constraints.
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Differing from market consensus, we don't expect the main camera of the 4.7" iPhone 6 to use OIS VCM due to production capacity restraint at iPhone 6 VCM suppliers Mitsumi (JP) and Alps (JP). Rather, we predict it will use a middle-mount type of open-loop VCM updated from the one used in the existing iPhone 5S. The 5.5" iPhone 6 is more likely to be equipped with OIS VCM due to lower estimated shipments and the need for more product features to differentiate itself from the 4.7" iPhone 6
The smaller 4.7-inch iPhone is expected to feature a lens module that will offer faster focusing speeds and power efficiency than the module being used in the iPhone 5s, however, which Kuo suggests "will lead its rivals."

Article Link: Optical Image Stabilization May Be Differentiating Factor for 5.5-Inch iPhone 6 [Updated]
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Old Jun 24, 2014, 06:53 PM   #2
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If the specs really are different (other than screen size) between different sizes of iPhones, a lot of people are going to be pissed off. Not everybody wants a huge phone.
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Old Jun 24, 2014, 06:53 PM   #3
farewelwilliams
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$4-$5 cost premium. So expensive.
*sips Starbucks*
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Old Jun 24, 2014, 06:54 PM   #4
DBZmusicboy01
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Now that's NOT Apple like..
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Old Jun 24, 2014, 06:54 PM   #5
joelisfar
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So it's official? The 5.5-inch iPhone 6 will be $204 or $205 with a contract?
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Old Jun 24, 2014, 06:54 PM   #6
DanielDD
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I thought the Differentiating factor would be the size of the screen. I'm so dumb
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Old Jun 24, 2014, 06:56 PM   #7
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so i take it apple won't be putting a major 13mp like most of these phones carry at the moment.
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Old Jun 24, 2014, 06:57 PM   #8
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Don't believe in this rumor for a second. The sh*tstorm that would ensue would simply not be worth it. Really doesn't make any sense in terms of manufacturing either. Not to mention that Apple have never really differentiated products so similar with only one feature being a difference (aside from screen ofc which relies more on personal taste imo).
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Old Jun 24, 2014, 06:59 PM   #9
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Wouldn't the larger phone be able to be thinner? OIS would almost certainly require a thicker phone. (or a larger bulge for the lens) The camera sizes would be a far more useful stat to rumorize than the the wholesale cost of the camera.
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Old Jun 24, 2014, 07:01 PM   #10
arn
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Quote:
Originally Posted by Imory View Post
Really doesn't make any sense in terms of manufacturing either.
Why not? OIS takes more space, the 5.5" is bigger than the 4.7".

arn
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Old Jun 24, 2014, 07:01 PM   #11
phantom76
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Quote:
Originally Posted by farewelwilliams View Post
$4-$5 cost premium. So expensive.
*sips Starbucks*
Lets say Apple sells 75 million iPhone 6 4.7" models in 2014-15. It is an additional cost of 375 million USD for them. Not very cheap.

(Compare this to Nokia's $169 million profit in all of 2013.)
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Old Jun 24, 2014, 07:02 PM   #12
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Originally Posted by arn View Post
Why not? OIS takes more space, the 5.5" is bigger than the 4.7".

arn
If it's the same width...Why would it take more space. If it did...It would be a taller lense. But it wouldn't make sense if it's the same width.
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Old Jun 24, 2014, 07:03 PM   #13
KillerTree
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Disappointing if true because this would force me to spend $100 more dollars than I wanted to on a phone size I didn't plan on getting. Photo quality on a phone is very important to me 😓

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Old Jun 24, 2014, 07:03 PM   #14
Bill Poulos
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Such a Stupid Decision Would Be Stupid... Really Stupid

Why would Apple want to upset so many customers for a mere cost premium of $4 to $5 for optical image stabilization?
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Old Jun 24, 2014, 07:05 PM   #15
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Can't believe people are complaining about this....

The 4.7" model is going to be the "C" model and the 5.5" is going to be the premium model. It's funny because people never complained over the lack of Touch ID in the 5c.
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Old Jun 24, 2014, 07:05 PM   #16
Mr Dashles
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Don't worry, folks. Next week, an analyst will predict both models will get OIS, and all will be right with the world.
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Old Jun 24, 2014, 07:06 PM   #17
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Does Apple really expect people to buy the 5.5 en masse? Meanwhile, the 4.7 is going to be sold, shooting crappy pictures.
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Old Jun 24, 2014, 07:07 PM   #18
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This is really bad news. I think a lot of the public would be displeased if the 5.5 model was Apple's flagship model. Given what the consumer interest survey posted here earlier today indicated, there are clearly more people interested in the 4.7 model.

UPDATE: Ming-Chi Kuo agrees. Now we know it must be true *rolls eyes*
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Old Jun 24, 2014, 07:08 PM   #19
henryngan2006
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Don't think so.
iPad Air and mini are the same thing besides the screen size, and I'm pretty sure this will be the same in iPhones. There I said it, if it turns out to be correct, pay me 30k a month to be an analyst.
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Old Jun 24, 2014, 07:08 PM   #20
Jiz
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The iPhone Pro will have the higher specs of course.

The 2014 iPhone lineup?
-iPhone Pro
-iPhone Air
-iPhone Mini
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Old Jun 24, 2014, 07:08 PM   #21
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Quote:
Originally Posted by farewelwilliams View Post
$4-$5 cost premium. So expensive.
*sips Starbucks*
$4 across 40 million devices... is $160 Million dollars... and that's how Apple bean counters will see it.
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Old Jun 24, 2014, 07:10 PM   #22
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Quote:
Originally Posted by Imory View Post
Don't believe in this rumor for a second. The sh*tstorm that would ensue would simply not be worth it. Really doesn't make any sense in terms of manufacturing either. Not to mention that Apple have never really differentiated products so similar with only one feature being a difference (aside from screen ofc which relies more on personal taste imo).
Quote:
Originally Posted by arn View Post
Why not? OIS takes more space, the 5.5" is bigger than the 4.7".

arn
It actually makes a ton of sense for a very simple reason. The supply chain for OIS just isn't ready for manufacturing many tens of millions of OIS camera modules for the phones. This is the reason why even Samsung, who love to throw every known feature under the sun into their phones, couldn't find a way to equip their Galaxy S5 with an OIS camera yet even though their competitors such as LG and Nokia do have phones with OIS. Likewise iPhones have been far too successful for OIS.

The industry reportedly have been working very hard to meet this demand but so far they have not been very successful so far. However it's been said both Apple and Samsung will begin releasing OIS-equipped phones, the next Galaxy Note probably will be the one and the bigger iPhone with an OIS makes a lot of sense based on those factors and rumors.
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Old Jun 24, 2014, 07:11 PM   #23
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Better picture quality might be what prompts me to purchase a new iPhone.
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Old Jun 24, 2014, 07:11 PM   #24
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why would they do this with the 4.7 and 5.5 iPhones when they don't do this with the 7.9 and 9.7 iPads (i'm referring to significant feature differences)?

doesn't make sense.
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Old Jun 24, 2014, 07:13 PM   #25
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Originally Posted by SolarShane View Post
Can't believe people are complaining about this....

The 4.7" model is going to be the "C" model and the 5.5" is going to be the premium model. It's funny because people never complained over the lack of Touch ID in the 5c.
Lol, maybe because the 5 and 5s are the same size bud and some people like their mobile phones mobile.
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