inside man 55's  Instablog

inside man 55
Send Message
Strategic trader, interested in stocks with value and good growth potential, also interested in larger macro trends. I actively trade options and may buy or sell options at any time. I highly urge everyone to look at the following two websites: www.ask-socrates.com, www.armstrongeconomics.com.... More
  • Will There Be A 4" IPhone 6? I Don't Think So. 2 comments
    Jul 1, 2014 6:18 PM | about stocks: AAPL

    At this point everyone knows that there will be a 4.7" and 5.5" iPhone 6 being released later in the year. One question I had is will Apple launch a 4" iPhone 6?

    I am going to say no for a few reasons.

    1) When Apple introduced the iPhone 5 it was only introduced in one size - 4".

    2) If Apple were to introduce a 4" iPhone 6, it would cause confusion as the new iPhone, 5c, and 5s all would be the same size.

    3) An additional iPhone 6 size introduces supply chain and inventory management issues. Three different phones in three different colors is 50% more combinations than two different phones in three different colors.

    One argument in favor of producing a new 4" iPhone is ease of use. Many people want a phablet but a majority of the people are fine with a smaller phone. There doesn't seem to be any reason for Apple to alienate it's core user base.

    One way Apple can get around that problem of ease of use is to reduce the bezel's at the top and bottom of the phone and stretch the screen to use more of the space on the left and right side. By just making the phone a bit taller and wider there would be no reason to introduce a 4" iPhone 6.

    I do think the 5s will take over and become the new 5s line in color. Will the current 5c line survive? That would leave the 4S as the cheapest phone and a big gap in features and price to the 5s. An easy way to have the current 5c line survive is to keep the same colors and introduce the current 5s with different colors.

    Then Apple would have the 4s, current 5c, current 5s, and two new 6 phones to compete at a variety of price and feature points. They haven't had 4 different phones on sale before, except for a few occasions when the 4 was also on sale with the 4s, 5c and 5s.

    Disclosure: The author is long AAPL, GTAT, PXLW.

    Additional disclosure: The author also writes covered calls on the above from time to time when market conditions are favorable.

    Stocks: AAPL
Back To inside man 55's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • Anyoption
    , contributor
    Comments (1367) | Send Message
     
    I don't think a slightly bigger phone would alienate Apple's core user base per se. I think most people would welcome a larger phone as long as it doesn't take two hands to navigate it.
    2 Jul 2014, 07:54 AM Reply Like
  • inside man 55
    , contributor
    Comments (1619) | Send Message
     
    Author’s reply » Agreed, I just make the case why a similar 4" phone doesn't seem likely.
    6 Jul 2014, 09:24 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.