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New 4" iPhone With 12MP Camera Said to Cost $400-$500, iPhone 5s to Receive 50% Price Cut

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KGI Securities analyst Ming-Chi Kuo has issued a research note to investors, a copy of which was obtained by MacRumors, in which he claims Apple's next-generation 4-inch iPhone will feature a 12-megapixel rear-facing camera, as opposed to an 8-megapixel sensor as previously rumored.

iphone5sstack.jpg

Kuo also reiterated that the new 4-inch iPhone will have other similar hardware specs as the iPhone 6s, including an A9 chip and NFC for Apple Pay. The device's form factor is expected to be similar to the iPhone 5s, although the display is said to have slightly curved 2.5D glass like the iPhone 6 and newer.

Apple's new 4-inch iPhone could also feature 16GB and 64GB storage capacities, 802.11ac Wi-Fi, Bluetooth 4.2, Live Photos support, and a slightly larger 1,642 mAh battery compared to the iPhone 5s. 3D Touch will likely remain exclusive to the iPhone 6s and iPhone 6s Plus as a differentiating feature.

The well-informed analyst continues to believe the smartphone will cost between $400 and $500 in the United States. The lower price point should help Apple target the mid- to low-price segment and drive iPhone sales in emerging markets such as China and India. Comparatively, the larger iPhone 6s starts at $649.

KGI Securities expects total 4-inch iPhone shipments to grow 131% year-over-year to 37 million units in 2016, on the strength of the new 4-inch iPhone launch and a 50% price cut on the iPhone 5s. Apple currently sells the iPhone 5s for $450 at full retail price, so the smartphone may soon be discounted to $225.

The research firm has lowered its new 4-inch iPhone shipments forecast to 12 million units from 18-20 million units because it believes customers that favor a small-size iPhone may purchase the cheaper iPhone 5s instead. KGI expects iPhone 5s shipments to "surge" following the half-off discount.

Kuo said Apple's upcoming 4-inch iPhone is "generally dubbed iPhone 5se," but a recent report said the smartphone may actually be called the "iPhone SE." The purported iPhone 5s successor has been given many other names in recent months, including "iPhone 6c," "iPhone 5e," and "iPhone 5s Mark II" internally.

Apple is expected to announce the new 4-inch iPhone, alongside a new 9.7-inch iPad Pro and minor Apple Watch updates, at its rumored March 15 media event. Barring any last minute changes, the smartphone could reportedly go on sale as early as March 18. Apple is unlikely to offer pre-orders for the device.

The research note also clarified that Apple will offer both single and dual camera versions of the iPhone 7 Plus.

Article Link: New 4" iPhone With 12MP Camera Said to Cost $400-$500, iPhone 5s to Receive 50% Price Cut
 
Article Link
https://www.macrumors.com/2016/02/27/new-4-inch-iphone-400-to-500-iphone-5s-half-off/
NOV said:
I don't really see potential for this phone, premium pricing with tiny screen. Hope at least that the design will be something spectacular.
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Styling, I will doubt between my 6s plus which is very functional and this because it'll probably be beautiful and reduced, like the 5s was. To me that's the perfect size styling wise.
 
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I don't care so much about the cost, but otherwise, it's sounding nearly perfect.... IF it has 2GB of RAM.

I think, though, that to keep selling the 5s at a reduced price is a mistake. That phone will very likely be obsolete (or may as well be) with the next couple of iOS updates. It's not a good deal if it doesn't work well or provide a good user experience. Apple is making way too many poor user experiences these days.
 
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50% price drop of the 5S? Unlikely. Maybe just a signal on market price of used 5S.

So this year's lineup will be SE, 6S, and 7? Apple ditching the A8 so quickly. Still, it's great for budget centric consumers.
 
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QCassidy352 said:
I don't believe it. I don't believe they will ever sell any iPhone at $225 (full retail). That's playing in the low end of the market, which they've never done in any product category. I also doubt the new iPhone pricing. Well, maybe a 16GB for $500.
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I agree. And, I'd actually be worried if they do, as I said above, selling someone a new iPhone 5s is just asking for a premature poor user experience. That's not good for the Apple brand, even if it brings in some extra cash and iPhone sales numbers.

And, while Apple says they don't care about cannibalization, I think they do if the profits get cannibalized. I'm guessing that if the new 4" phone really does have this close of specs to the 6s, and they priced it that much cheaper, it would quickly become the top selling iPhone model (as opposed to more like 20-30% if it were closer to the price of the 6s).

I also agree that if that pricing is true, that will be for the 16GB model, which is pretty much useless, so that probably means $100 more for the 64GB.
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pika2000 said:
So this year's lineup will be SE, 6S, and 7? Apple ditching the A8 so quickly. Still, it's great for budget centric consumers.
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It depends on how quickly Apple will be moving the whole product line to 2GB RAM and making 'advances' to the OS.
 
But they won' t.
Perhaps they'll sell the 5s for 350 and the se for 450. But I think they won' t get lower. Perhaps in India , South America or other emerging markets. Perhaps they won' t even sell the 5s in western markets anymore. Just like they did with the iPhone 4.
 
SteveW928 said:
And, while Apple says they don't care about cannibalization, I think they do if the profits get cannibalized. I'm guessing that if the new 4" phone really does have this close of specs to the 6s, and they priced it that much cheaper, it would quickly become the top selling iPhone model (as opposed to more like 20-30% if it were closer to the price of the 6s).

I also agree that if that pricing is true, that will be for the 16GB model, which is pretty much useless, so that probably means $100 more for the 64GB.
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I don't think it will "cannibalize" per se. People who wants the larger screen would still opt for the 6S instead of the SE.
I mean if you think about it, the non-plus version should've "cannibalize" the plus phones, but they didn't.
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ghanwani said:
http://appleinsider.com/articles/15/12/14/apple-slashes-iphone-5s-price-in-india-by-almost-half
If they can do it in India, why can't they do it in the US?
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Indian market != US market. Why should Apple slash prices on the market that can and will pay for the premium price?
 
iabacus said:
Too many models and configurations.
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It is actually less confusing.
Before, consumers have to worry about many other things like Apple pay support, etc since the baseline iPhone is two generations behind. Now, if the baseline iPhone is closer tech wise, only 1 gen behind, people just need to worry about screen size.
Want basic iPhone that can do most of the advertised features? SE
Want larger screen than that? 6S
Want latest and greatest? 7.
 
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