Sometime in early 2016, Apple plans to release a new iPhone with a four-inch screen and an A9 processor. So says KGI Securities analyst Ming-Chi Kuo. Said to resemble “an upgraded iPhone 5s,” the new model would mark a reversal of the recent trend for new phones to feature ever-larger screens.
According to a report published Dec. 3 on the MacRumors website, Kuo said in a research note to subscribers that there is still an existing demand for smartphones with smaller displays. By comparison, the iPhone 6 features a 4.7-inch display and the iPhone 6 Plus has a 5.5-inch display.
“While [the] new model may not generate huge sales, Apple still has good reasons to launch,” Kuo wrote in his note. He predicted the new four-inch model could sell about 20 million units, making up about 8 to 9 percent of iPhone shipments next year.
‘Same Trap as iPhone 5c’?
A recent survey of 1,077 U.S. consumers by the investment and asset management firm Piper Jaffray found that 20 percent preferred a smartphone screen size of four inches, according to analyst Gene Munster. With iPhone owners’ upgrade preferences, he said, it’s unlikely a four-inch device — reportedly to be called the iPhone 6C — would sell more than existing lower-end iPhones.
“The iPhone 6C could fall into the same trap of the iPhone 5C,” Munster noted in a research report released Dec. 4. The iPhone 5C, he continued, proved undesirable because its primary difference from previous models was its color … and most owners simply end up using a case that covers their phones’ color.
“The main feature of the possible 6C is smaller size when we just went through the biggest upgrade cycle in iPhone history with the 6 and 6 Plus driven by larger size,” Munster said.
The iPhone 6 and 6 Plus were released this past September, and quickly broke first-weekend sales records with more than 13 million units sold in three days.
Apple Pay, But No 3D Touch
According to Kuo’s research note, the lower price point for the four-inch iPhone would offer appeal to budget-minded customers and buyers in emerging markets. He said he expected the new phone to be priced at $ 400 to $ 500.
By comparison, the iPhone 6 starts at $ 549 and the iPhone 6 Plus starts at $ 649.
Kuo said he expects the new four-inch iPhone would feature an A9 processor and a curved-edge glass screen. It would also support near-field communication for Apple Pay contactless payments but, unlike the iPhone 6 and iPhone 6 Plus, would not support Apple’s 3D Touch, which lets users control their devices according to the amount of pressure they apply to the screen.
“While the new 4-inch iPhone may not catalyze shipments, it should still help mitigate slow seasonality for suppliers and a negative impact on share performance,” Kuo wrote. “This would also in turn raise investor awareness of the Apple supply chain.”
Apple virtually never comments on new-product rumors and, true to form, did not respond to our request for additional details.
