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I'd personally prefer a 4.7" display in a smaller form over a larger display in the same form. Move to 4.5" in roughly the same form as SE (with 1334×750) and let that replace both the 4" and 4.7" models going forward. Then make the larger one a more pocketable and manageable 5.5" plus model. This allows two models to replace three and sets an inch between them, differentiating them nicely.

I actually would like then to keep the 4" and make it even more compact. I think a lot if the 4" owners just like to have the most compact device possible to have on ourselves at all time. Smaller is better when you're out and about, outdoors, at the gym, jogging, sports, construction type work.

And I don't think it would cannibalize any other form factor but I believe like me, own two sizes. I love my compact SE AND love my 7 Plus. And both for completely different reasons and uses.
We all have different use needs, and that's great to have options because it encourages those that need them to buy two phones instead of just one.
 
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I'd personally prefer a 4.7" display in a smaller form over a larger display in the same form. Move to 4.5" in roughly the same form as SE (with 1334×750) and let that replace both the 4" and 4.7" models going forward. Then make the larger one a more pocketable and manageable 5.5" plus model. This allows two models to replace three and sets an inch between them, differentiating them nicely.

For an example of this; Sony's compact variants use a 4.6 inch display and come close to the dimensions of the 4 inch iphones.

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If there is no top or bottom non-screen area, where do you hold it? Sometimes I need to grab the phone and hold it without cover things up or touching the screen, from the front. If it's almost all screen, how do you (sometimes) grab it or hold it without pushing buttons or accidentally swiping the screen? I think a bezel of some size at least on top/bottom is necessary for normal use.

I agree. Bezels exist for a reason. It annoys me how everyone keeps clamouring for bezel-free displays and yet don't think of what it will be like to actually use. For example, I currently purchased an S7 edge, and although I love (almost) everything about it and how it's really aesthetically pleasing to look at, it's a pain in the ass to use. One handed use is near impossible and a complete nightmare. I accidentally keep opening and closing things with my palm near my thumb area as I stretch my thumb to different areas of the display, even when I'm being really careful. I have to hold it a certain way and even then it still happens. It's honestly really annoying and frustrating to actually use on a daily basis.
 
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Ack! I'm tired of hearing about how bright OLEDs are. That's just not true. Samsung's best OLED screens are about 450 nits. Only when in direct sunlight do they go over 500, but then drop back down rapidly. The only OLED screen that goes higher than an LCD is Apple's new series 2 watch, which I have. That's very bright.

But we don't know why. Having an OLED too bright shortens its lifetime considerbly. It could be that Apple believes that the screen isn't on enough vs a smartphone so that they can manage it.

But otherwise, LCDs are much brighter than OLEDs.
 
Ugh. Sounds like once again the people that don't like phablet sized phones will get shortchanged on technology.
I used to be in your boat. Look at it this way: if someone thinks the 12" MacBook is the perfect form factor for a laptop, is it really rational for them to complain that it lacks discrete graphics and active cooling? Apple simply must add new features to remain competitive, and the unfortunate reality for those of us who prefer small phones is that the entire market has shifted and somewhat forced Apple's hand. If you look back at the 5 and 5S releases, remember that they were really the only holdout for small form factors, and many (perhaps a majority) complained that they were too small. Faster processors and better cameras alone will not do the trick in the long run. The taptic engine, large screens, stereo speakers, dual cameras, and a big enough battery to power it all just won't fit in the same 4" form factor.

Now, slight hope remains for another SE-type 4" model with an updated processor and whatever else, but for Apple this would appear to have diminishing returns as the market pushes further away from it.
 
So basically, if this turns out to be reality, the phones will probably be essentially the same dimensions as the 4.7 and 5.5 inch phones we have today but the bezels will just be gone so the screen can be a little larger. That's fine with me. Although, something I hadn't considered before -- how does a case work on a phone with no bezel?
 
Remember that time when Phil Schiller said that it's very easy to make things bigger and much harder to make things smaller (referring to larger phones)? Well, if they decide to stick with the same sizes as the current iPhones, even if the screens are bigger, they would be contradicting themselves because the real challenge would be 4.7" and 5.5" iPhone displays in smaller form-factors than the current ones.
 
"The iPhone 8 moves to 5" (from 4.7") and the Plus moves to 5.8" (from 5.5")."

If this happens it would be great news for the normal iPhone users.

There is really no need for the brick version to get any bigger.

At least from my perspective, I hope this is not the case. If it is, then I will had to adapt or hold out hope they update the SE.
 
5.5" is barely usable with a case on for me. Guess I'll get the 5" next time. I hope they don't withhold features on the smaller model.
 
I will pre-order that 5.8inch model so hard next year

It's tempting. But the 5.5 iPhone is fairly large for me as is. 5.8 would that much more to carry. But, I'm sure Apple will sell me why I want it. And Apple is investing all the premium features into the Plus variant.
 
I'd personally prefer a 4.7" display in a smaller form over a larger display in the same form. Move to 4.5" in roughly the same form as SE (with 1334×750) and let that replace both the 4" and 4.7" models going forward. Then make the larger one a more pocketable and manageable 5.5" plus model. This allows two models to replace three and sets an inch between them, differentiating them nicely.
Probably already in the works. I bet money in three sizes of bezel-less phones. Should the current SE get a design update. It should bring screen real estate to around 4.3-4.5, with a super small form factor
 
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I really don't understand why anyone would think Apple is breaking away from their tick/tock cycle. Next year will debut the iPhone 7S and 7S Plus if history has taught us anything. Is there any real reason to believe otherwise? Genuinely curious if anyone has a legitimate reason.

Maybe because they already broke away from that cycle this year? The iPhone 7 was the first non-S release to have the exact same form factor as the previous iPhone. If they release a 7S with the same design again, 4 years in a row, it will hurt their image and sales too much. If they release a new form factor but still call it the iPhone 7S, that just wouldn't make much sense.
 
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Obviously this could mean a 10% bigger battery but, since they will persevere in their stupid obsession for thinness, they will cut some more mm and therefore it will have again a less than 2000 mAh battery for the smaller one and less than a 3000 mAh battery for the Plus...
 
Ugh, another form over function design rumor? I can see narrowing the bezels some but other things are obviously rediculous. A camera behind the screen?!? Who believes this is a good idea?

If anything, Apple should (as others have stated), unify the features across a range of reasonable display sizes. Skip the gimmicky ideas and save money. A curved edge touchscreen is the dumbest idea ever. Eliminate the stupid camera bump... so what if the phone is 1mm thicker? That gives more volume and maybe that volume allows for inclusion of other things like a bigger battery. And better yet, the phone won't wobble on the camera lens!
 
And I'm growing tired of it. I just switched back to iPhone from Android mainly because it is becoming impossible to find a reasonable size top end Android phone. And now Apple is doing the same damn thing.
Smaller phones have lower specs because they serve as low-cost models. To some extent that is true for iPhones as well. Selling a phone with older specs and not updating it every year is one way to make it cheaper (and less attractive thus creating the incentive to buy something more expensive).

The question is, why did Apple release the SE at all? Was it only because they had the one-time chance to re-use the iPhone 5s chassis one more time to create a cheaper but not too much out-of-date phone? Or was it also because they (a) actually want to have a phone at that price point and (b) actually want to offer a smaller phone?

There is a scenario where the SE is updated after two years (aka spring 2018) with the iPhone 8 internals. Though the screen (and other front assembly items like the facetime camera and home button) as well as thickness would be rather out-of-date by then. Apple could re-use the iPhone 6 or 7 chassis for a cheaper, smaller phone but then it would re-use the iPhone 7 chassis anyway by selling the iPhone 7 for another year (and this wouldn't produce a phone that is actually smaller). In an ideal scenario, Apple would release a new 4 to 4.5" phone that either is an iPhone 7 shrunken (closer to 4 than to 4.5") or an iPhone 8, aka smaller bezels, shrunken to 4.5". However, there are no rumours in this regard. Maybe Apple is waiting until spring 2018 for this, which would explain the lack of rumours.
 
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