Why Apple’s larger iPhone 6 models could be great for the iPad

“There’s a lot of fear among Apple investors that the upcoming larger iPhone 6 models (reportedly coming in both 4.7-inch and 5.5-inch flavors) will serve to cannibalize the iPad product lines (in particular, the iPad mini),” Ashraf Eassa writes for The Motley Fool. “While this may very well be the case, the end result of this is likely to be a net positive for the Cupertino-based computing giant.”

“The argument against a larger iPhone is that users that would typically own a $549 or $649 iPhone would no longer see the need to supplement that device with a $399 iPad mini with Retina display for gaming and reading. While the screen real-estate difference between even a 5.5-inch iPhone and a 7.9-inch iPad is pretty substantial, let’s assume for a moment that the existence of a 5.5-inch iPhone ‘eats into’ sales of the iPad mini with Retina display,” Eassa writes. “What then?”

“So, what happens if an iPhone 6 5.5-inch replaces an iPad mini with Retina Display?” Eassa writes, “While this substitution may very well happen, it is likely that somebody buying one device to rule them all will buy a model with larger storage (since it needs to fit everything) which means that such a substitution could be very close to margin-dollar neutral.”

Read more in the full article here.

18 Comments

  1. There’s a lot of fear among Apple investors…

    Greed and fear drive the market so nothing new. In case your fear is too string why don’t investors invest in Dell?

    Wait it’s not a public company anymore.

    Before investors were fraud because there were no big screen iPhone and Apple was loosing market share. Now they fear… What about Microsoft a good old stock, stable?

  2. Good lord.

    I don’t need a 5.5″ phone. The things I do on my phone, or will do on a slightly larger (4.7″ phone), do not require me having a phone that will not fit comfortably in my pants pocket.

    However, having a 7.9″ tablet device, which I use for things that are best done on a tablet instead of a phone, is the perfect size for me for portability (fits into my coat pocket) and ease of use.

    So yes, maybe the 5.5″ iPhone 6 will overlap a little with the 7.9″ iPad Mini. But who really expects the 5.5″ iPhone 6 to be the big seller of the two sizes?

  3. It’ll be interesting to see which model, the 4.7″ or 5.5″ will be more popular. My money is on the 4.7″. I find 5″ phones to be a bit too large to be comfortable and a 5.5″ phone would be out of the question.

  4. There’s a lot of fear among Apple investors

    The official term is FUD:
    There’s a lot of FUD among Apple investors. AKA apple-hate propaganda. Nothing new.

    My pet anonymous coward stalker FUDs me as well! It’s just a token of LOVE. <3 <3 <3

  5. Apple stock has done well for the last 3 months. The growth in price is bound to attract BS about the future.
    Apple added a second phone (C) last year (that wasn’t an earlier model). That was successful in that it filled the mid-range market. The trend towards larger phones has bee real and Apple are wise to provide options for that. That will mean 3 or 4 mainstream models so apple’s development costs will increase. The goal is to increase revenue by competing in markets.

  6. Everything Apple does attracts FUD. Apple is a FUD generating genius, Cook and Ive must spend a lot of time designing the FUD magnets ….

    …or perhaps there are a lot of untalented people who know writing about Apple will get them attention but who have nothing intelligent to add, so they publish lame conjecture, wacky advice and trumped up complaints, like the stuff any supermarket rumor mag would put out.

    The unfortunate thing is that the Flood of FUD(tm) seems to work and attracts clicks for these dishonest and incompetent writers.

    [MDN, The “Flood of FUD” trademark is now yours if you want it!]

  7. A 5.5″ iPhone will definitely affect my current lineup. Right now, I have a 5S, iPad mini, iPad 4, MacBook Air 11″, MBP 13″ and MBP 15″ in my mobile/portable lineup.

    I rarely use the iPad 4, preferring the iPad min (Retina), which is why I didn’t upgrade to the iPad Air.

    With a 5.5″ iPhone, I’m likely to move from the iPad mini back to the full sized iPad and keep different content on it, (more games and videos).

    I know my usage is abnormal, but I can easily see how many people would see a 5.5″ iPhone overlapping with why they use a tablet, especially owners of a MBA 11″

  8. I’m hoping that the handoff feature allows you to use your (disconnected) older phones to take your calls sometimes. Then I would consider a larger phone, maybe even a 5.5.

  9. look. apple lost its innovation mind after Steve. it follows popular trend in the market just like Samsung does. there is reason to explain blah, blah, blah to justify why bigger screen works…. apple seems no more than money sucker from us. we will see 5.5 inch iphone very soon. I won’t still buy it anyway. there are many good phones out there already. you don’t have to buy closed system piece of shit. especially if you live out of US.

  10. I think the 5.5 will be an IPad nano. Introducing a new iPhone size and a new iPad size at the same time is more likely than two iPhone sizes at the same time. 3 products insead of 2. The iPad would have one without cell connectivity too. There are more places that sell iPads than iPhones. There are large institutions; schools, hospitals, factories that a small and cheeper iPad would be a great seller.

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