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Apple's (AAPL +3.4%) sell-side fans are beginning to insist the company needs a bigger iPhone....

Apple's (AAPL +3.4%) sell-side fans are beginning to insist the company needs a bigger iPhone. Barclays' Ben Reitzes sees the market for smartphones with 5"+ displays growing to 230M units in 2015 from 27M in 2012, and thinks a large iPhone could boost ASPs by ~5% and 2014 EPS by $7. Sterne Agee's Shaw Wu offers a similar take. "We believe AAPL is leaving money on the table by not participating in larger touchscreen form factors." Wu adds he's seeing evidence of a strategy change in supplier checks. (Blodget) (Wozniak)
Comments (33)
  • catbird
    , contributor
    Comments (28) | Send Message
     
    Shorts are such whiners.

     

    Hey Shorts, if you think you can do it better, start your own company in your garage like Steve Jobs did.
    5 Feb 2013, 01:45 PM Reply Like
  • Doyle3000
    , contributor
    Comments (1286) | Send Message
     
    i'm long AAPL and am slightly concerned at Cook's hard stance on "our phone is the perfect size" answer. I hope it's not total arrogance akin to GM saying "those tin cans won't catch on" when the first Honda CVCC's hit our shores. If people want 5" displays then make the coolest damn 5" display, don't deny the market Tim!
    5 Feb 2013, 01:52 PM Reply Like
  • Valueplay98
    , contributor
    Comments (580) | Send Message
     
    "All cars will be Black !" ~ Ford
    5 Feb 2013, 08:11 PM Reply Like
  • Yokyok
    , contributor
    Comments (325) | Send Message
     
    a 4" phone is apple's idea of "innovation" in 2013? hilarious
    5 Feb 2013, 01:52 PM Reply Like
  • scott trader
    , contributor
    Comments (4618) | Send Message
     
    just a thought.....well it would be easier to assemble....foxconn was having problems assembling in tight space....I personally like the size it is, but kids like the bigger screen...
    5 Feb 2013, 01:53 PM Reply Like
  • John1138
    , contributor
    Comments (161) | Send Message
     
    I HAVE a "big iPhone", an LTE capable iPad mini.
    5 Feb 2013, 02:09 PM Reply Like
  • june1234
    , contributor
    Comments (2549) | Send Message
     
    Do you have someone hold the phone for you when you make a call?
    5 Feb 2013, 06:41 PM Reply Like
  • bgold1955
    , contributor
    Comments (1984) | Send Message
     
    Apple will build a larger screen sized iphone if they feel one is needed to enhance revenues. Cook is right they did have the right size phone, as sale results indicate, but that doesn't mean he would not consider a larger one.
    5 Feb 2013, 02:09 PM Reply Like
  • adenovir
    , contributor
    Comments (34) | Send Message
     
    My kids, 16 and 19, who both have iPhone4's, told me they want their next phones to be Samsung Galaxy 3s because of the larger screen. I doubt they're the only ones saying this. Are you listening AAPL?
    5 Feb 2013, 02:10 PM Reply Like
  • MajorDude
    , contributor
    Comments (252) | Send Message
     
    You have very wealthy kids.
    5 Feb 2013, 02:16 PM Reply Like
  • kimboslice
    , contributor
    Comments (1474) | Send Message
     
    They're already talking about their "next phones"?
    5 Feb 2013, 02:23 PM Reply Like
  • shirin123
    , contributor
    Comments (35) | Send Message
     
    Tell them to try the iphone5. It has a bigger screen. I think it is the perfect size.
    5 Feb 2013, 03:08 PM Reply Like
  • adenovir
    , contributor
    Comments (34) | Send Message
     
    I have an iPhone 5 while many of their friends have Galaxy 3's. They still prefer the latter.
    23 Feb 2013, 06:27 PM Reply Like
  • kimboslice
    , contributor
    Comments (1474) | Send Message
     
    I think Cook and Apple are the best to judge what iPhone screen size is best.
    People voting with their wallets seem to agree.
    Want a giant phone that won't fit in your pocket or anywhere else? Get a Samsung.
    5 Feb 2013, 02:21 PM Reply Like
  • Topcat
    , contributor
    Comments (416) | Send Message
     
    Actually, I have played with the S3, and it is right at the max size for pocket or hand use, but very usable and not "too" big. I plan to get one now that my beloved original Nexus One from HTC/Google finally failed. Just waiting for the next "free" sale w 2 yr contract. For larger display, I have iPad. You have to listen to the customer. I wouldn't play MP3s on a nice stereo system for the life of me (I use FLAC from original CD), but the young people see nothing wrong with the very poor quality MP3. Heck, who thought, after getting very large TVs for blu-ray movies, that anyone would want to watch a movie on a handheld phone! But the young people do it.
    5 Feb 2013, 02:54 PM Reply Like
  • pagreen1966
    , contributor
    Comments (584) | Send Message
     
    Each to their own. I have a 5 inch Dell streak which I carry about with me all the time (yes it fits in my pocket) and it is a better size for surfing the web, reading ebooks, using as a satnav, watching videos and yes it is also ok for making calls. I would love an Apple phone but 4 inch is way too small for my purposes. Apple should provide a choice to cater for all tastes.
    5 Feb 2013, 03:06 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3718) | Send Message
     
    "Finally failed" so the android only lasted a few years eh? Oh thats real quality, my android only lasted 1 1/2 years. Try Nokia, they last forever.
    5 Feb 2013, 06:02 PM Reply Like
  • scott trader
    , contributor
    Comments (4618) | Send Message
     
    so do blackberries good paperweights
    5 Feb 2013, 09:48 PM Reply Like
  • Thomas903
    , contributor
    Comments (120) | Send Message
     
    When asked (on Jan. 23, 2013) whether Apple is leaving market share and profits on the table by not introducing a lower-price iPhone, Tim Cook pointed to Apple's iPod strategy. He didn't have to spell out details, because everyone knows there are several iPod models with different features and price points.

     

    For about a year now, the handwriting has been on the wall that a significant demand exists for a large-format iPhone and the drop in iPhone demand in about 6 months after the release of a new model suggests that Apple's supply chain is producing below full capacity by March each year (until July-August, when work begins on a new model).  It is therefor reasonable to expect that Apple has been doing development work on new models for at least one year.  However, Apple has other issues related to its ongoing business to address before launching new products, so we must be patient to see how Cook's plans unfold. (I wish it were not so!)

     

    Consider what delaying the jumbo iPhone means for AAPL investors.  Suppose (hypothetically) that Apple could add $5 billion to its bottom line each quarter with a jumbo iPhone.  Any delay in doing so clearly depresses AAPL compared to where it could be trading. However, the key question is whether the delay is temporary or permanent. 

     

    If temporary, the impact should be to lower Apple's market cap by $5 billion every quarter (about $5/share) that goes by without a jumbo model launch. The impact is like subtracting $5 billion from Apple's checking account at the end of each quarter until the new model makes its appearance.

     

    If it is believed that the jumbo iPhone will NEVER be introduced, that lowers Apple's potential EPS in every future quarter by about $5/share ... about $20 annually.  If one assumes a long-run p/e multiple of (say) 12, that immediately lowers the value of AAPL by 12 x $20 = $240/share.

     

    The reality is somewhere between these extremes.  Many observers believe it is likely that Apple will introduce a larger format iPhone sometime in the next 1-2-3 years, so the share price is depressed by somewhere between $5 and $240.  As news and rumors alter investor expectations over time, AAPL fluctuates up and down with the size of $5-$240 discount.

     

    The implication is that investors who believe a jumbo iPhone is inevitable within the next year will value AAPL by $200+ more per share than investors who think it will never happen. That means the optimists are buying shares from the pessimists.

     

    The launch of new iPhone, iPad, iPad mini and Mac models within a single quarter suggests that Tim Cook has considerable confidence in his team and supply chain; his elevation of Jony Ive signals Cook's emphasis on new designs; and recent disappointments (unit sales, EPS) have created an incentive for bolder and more aggressive moves to answer critics, satisfy shareholders and serve personal egos.

     

    The sell-side pessimists who believe that Apple is insensitive to market demands and won't launch a large format iPhone in the relatively near future are delusional.  Apple didn't become the most valuable company in the world's largest and most competitive economy without taking care of business. 
    5 Feb 2013, 03:23 PM Reply Like
  • VeryCurious
    , contributor
    Comments (109) | Send Message
     
    Dinner with 3 tech friends Saturday. Discussed smartphones. All 3 moving to big screen Android. 2 are old guys like me who want to see more without squinting. One guy is the power supply guy for a server farm in three buildings. Needs interoperability. Sure, Apple is slick and cute, but the buyers vote with their bucks. I'm long Apple, and concerned.
    5 Feb 2013, 03:29 PM Reply Like
  • AllRisk
    , contributor
    Comments (3) | Send Message
     
    Let's see, 4" was great but now you want 5" then it will be 6" then it will be a Mini then a pad.....
    Show proof/facts on the numbers that want 5" then you will have my interest. many Iphone owners i know love the current size so that it is not too bulkey to put in your pocket. When i need something bigger i go to my IPad or you can use a Mini... with each veriation on the phone comes cost. Then someine will Whine about margins.......
    5 Feb 2013, 04:33 PM Reply Like
  • bgold1955
    , contributor
    Comments (1984) | Send Message
     
    Got a 5 and there is no question it is the best phone on the market for me and apparently most others based on sale results.
    5 Feb 2013, 08:09 PM Reply Like
  • cshoxie
    , contributor
    Comments (266) | Send Message
     
    Build it and they will come.
    5 Feb 2013, 05:16 PM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    If AAPL wants to innovate on screen size, may I suggest a glass screen that can actually be expanded by the user from 4" to 6"... then back to 4".

     

    HOW this would be done is beyond me, but doing so would be a great innovation. It's sad to see its current legal dept (rumors they're patenting it too) as AAPL's most innovative division.
    5 Feb 2013, 06:07 PM Reply Like
  • june1234
    , contributor
    Comments (2549) | Send Message
     
    They need a larger screen that's what consumers want, I phone does fit very snug in the palm of your hand which is nice but those larger screens like the Samsung Note are nice, just barely fits in your jean pocket but it does fit, bigger no buy for me, just that size is a go . user friendliness, quality and a bigger screen combo that phone would be a big hit.I could go for that
    5 Feb 2013, 06:36 PM Reply Like
  • bondstevenbond
    , contributor
    Comments (163) | Send Message
     
    Whatever you are smokin SoldHigh must be some goooooood shhhhhhh......lololol hahaha!! Good one!!
    5 Feb 2013, 06:51 PM Reply Like
  • Valueplay98
    , contributor
    Comments (580) | Send Message
     
    How AAPL has gotten away with "smaller than the competition's" phones all these years has amazed me all this time ...
    5 Feb 2013, 08:14 PM Reply Like
  • Barn Al
    , contributor
    Comments (142) | Send Message
     
    Agree w/ previous comment about "to each their own" I guess. I am voting for leaving screen size alone because I like using one hand for everything. (...LOL)

     

    But if a larger screen will help cool the competition, that is fine too - they won't won't be selling it to me anyway. I guess it wouldn't be the first time Steve might have got things a little bit wrong....(but I doubt it). I just don't want some cheap piece of crap that feels like a Fisher-Price toy.
    5 Feb 2013, 08:48 PM Reply Like
  • hahaha48
    , contributor
    Comments (1048) | Send Message
     
    I just bought a HTC droid DNA a 5 inch phone.
    I have done some research and come down to the samsong note ll and the DNA. Both has some advantage and some disadvantage. The DNA only has 16g and also like the iPhone no sd slot. But the displace is extremely good. full 1080p. I use netflex and it is perfect. I just learn from Verizon I can add a new line (base phone line for $10 a month and get a DNA for $199. Then switch the phone over to my current data phone number. This way I can from now on upgrade my phone every 12 months.

     

    The phone is extremely fast compare to my droid MAXX which is only 12 months old. It has the fastest cpu chip for smartphone. when the BB10 come out i would try it out in a store and compare it to the DNA and then I can decide to buy puts for BBYK or not. The BB10 is 4 months later than the DNA so it better be at least as fast and as good.

     

    Samsong needs a new phone now to compete with the DNA. The iPhone5 is already behind by some distance and the 5S better be very good if it is still 4 inches. Remember it takes a lot more processing power to drive a 5 inch phone with 1080p resolution.

     

    I am not going to tell you to buy a 5 inch phone but my guess is there are at least 35% of the user who would want a 5 inch phone over a 4 inch phone.The real problem is that Cook is so egotistic about the subject that he deserved to fail. By the way all the sail people in the Verizon store I purchase my phone from uses android phones that are larger than 4 inches.
    5 Feb 2013, 09:02 PM Reply Like
  • winnie6052
    , contributor
    Comments (234) | Send Message
     
    I have used a larger Android screen for over two years. Switched to iPhone for a apple ecosystem

     

    Just adjust the font size on iPhone for reading.

     

    Bigger screen does not display larger in all cases. I use reader tool in safari to read articles.

     

    Heck you can turn on voice reader and have Siri read you anything on the screen.

     

    Pretty simple and it all just works.
    5 Feb 2013, 09:02 PM Reply Like
  • MattZN2
    , contributor
    Comments (692) | Send Message
     
    I'd personally rather the phone fit in my pocket and in my hand and not take up too much space, hence my (Android) Razr M. If I want a larger screen I dig out my iPad.

     

    Perhaps part of the problem here are people who want to run their entire lives from a smart-phone. I don't see any happy endings with that no matter how big the screen is.

     

    -Matt
    5 Feb 2013, 09:48 PM Reply Like
  • wmateri
    , contributor
    Comments (522) | Send Message
     
    Maybe the ideal would be to have a 7" tablet (or even a 10") with LTE capability and a bluetooth headset to act as the phone. Then just leave the tablet in the backpack, briefcase, purse or what-have-you. With voice-activated calling, you shouldn't need to see the tablet except for texting, email, browsing. Otherwise the "phone" size will just grow until you're holding a 26" screen to your ear. The manufacturers should just separate the voice part from the rest and give users choice over a variety of sizes.
    5 Feb 2013, 09:55 PM Reply Like
  • scott trader
    , contributor
    Comments (4618) | Send Message
     
    It just seems weird everbody walking around texting ..stumbling into fountains, falling into open manholes, sitting at stop lights til people start honking then they speed off at speed of light...women walking around stores with carts plugging up aisles texting away like zombies....if the phone gets too big men will have to carry purses....who wants a giant phone pulling your pants down....5 is max 4 is just right....
    5 Feb 2013, 10:01 PM Reply Like
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