Analyst: Apple should make a bigger iPhone

“Sterne Agee’s Shaw Wu this morning reiterates a Buy rating and a $715 price target on shares of Apple, writing that while the ‘greatest turnaround and growth story of the past decade’ is not over for the company, nevertheless, the company has to take some steps to ‘reclaim high-end leadership as iPhone 5 isn’t viewed as high-end anymore’ and ‘get more aggressive in the midrange’ of smartphones,” Tiernan Ray reports for Barron’s.

Ray reports, “Apple needs to take risks more, he thinks: ‘Sure iOS, iTunes, and the App Store are great but it is clear that many customers want larger screens. AAPL has obviously had a lot of success over the past decade with the same strategy but we think the company needs to think different and not be afraid of taking risks.'”

Read more in the full article here.

MacDailyNews Take: iPhone 5 isn’t viewed as high-end by whom, exactly? The iPhone 5 is the best-designed, best-built model of the smartphone that revolutionized the industry. There is nothing that surpasses it, there is no higher-end; certainly not the derivative plastic crap on the market from Samsung, stamped out to tolerances that Apple would toss in the reject bin before ever allowing them to be sold with the Apple logo.

37 Comments

  1. Apple also needs to build the iPhone nano, the iTV, the iBike, take over all automobile vehicular entertainment/computer systems, build robots to kick Asimo’s behind, produce a new Space Shuttle with Retina Display screens everywhere, let us all use the iFusion reactor being built in the new Mothership campus, and turn on Skynet.

    Did that about cover it?

  2. Yeah, yeah. I know analysts suck and all but even a broken clock is right twice a day.

    The iOS family would be stronger with an iPhone Plus and its companion the iPod touch XL. It’s that simple. If you don’t like either device then you won’t have to buy them. The 4″ iPhone could remain on the market for those who value one-handed use over all. Every other company has phones with multiple screen sizes and there’s no reason why Apple can’t have two (once the iPhone 4S life cycle is complete).

    You guys get all defensive whenever some tech writer or analyst says “Apple better release a 5″ phone or the company will crumble.” Well that isn’t my reasoning at all, nor the many other iPhone users who wish the screen was bigger. They should make one for the same reason they made the iPad mini: because it would be a damn good high end product running the best mobile operating system on the planet, something no other product in its category could claim.

    1. Apple, of course, will not crumble, but there is big market for larger devices, as competitors have proven.

      Why Apple should lose the sales and profits because of not entering that market? Notice that no one is able to compete with Apple in 4″ form factor, but Apple can easily compete in 5″ form factor market. Apple can easily make the best two-hand use phone, while, of course, keeping 4″ phone as their etalon, an unique one-hand-use top smartphone in the world.

    2. “Every other company has phones with multiple screen sizes and there’s no reason why Apple can’t have two (once the iPhone 4S life cycle is complete).”

      First, there are some technical issues with larger screen iPhone – scaling all apps to the larger sizes without compromising quality. This has been a problem on Android. It can be done, yes, but this requires work from not only Apple, but developers.

      Second, I’m sure there is some percentage of people that would like a 5″ screen and 6″ screen, etc, but that does not mean Apple should have a device in every category.
      Apple has historically been fairly simple with their product lines. The iPod did diverge (shuffle, nano, mini, classic, and touch), so there are exceptions. However, unlike the classic suits in a room/analyst thought process of “just make one of everything!”, Apple has invested more time in fewer products.

      While I do agree that some people want a “bigger” iPhone, how big is that market? Is it worth Apple diverting manpower away from next gen iPhone/iPad? Is it large enough to allow Android to become the dominant platform for revenue? My opinion, based only on speculation, is that such a market isn’t very large and certainly is not enough to give Android any competitive advantage.

      Overall, it isn’t that Apple should not explore other sizes of iPhone, but that the analysts would have Apple produce a different iPhone for every market segment. It’s the “Apple would really be a lot better if they copied everyone else’s business approach” thinking that irks me.

      1. Definitely not
        if the new iPad mini with retina and cellular
        can actuality be a secret phone

        then no need for a 5″ iPhone.
        BUT there is a need for a Device to be all in one.

        iPad mini will eat into iPod Touch sales.
        iPad mini will eat into iPad 2 / 3 sales.

        iPad mini with retina and cellular as a communication device will prove there is no need for a iPhone plus size.

      2. You have heard of the iPad mini? No? They weren’t going to make that either. No demand, no market for it. Bullshit! If they make a larger iPhone it will outsell the iPhone 5 easily. I really can’t understand the reasoning behind the denial by so many people here. It’s just a phone. It’s just a company. No need to defend it. They have screwed up. They should be selling a larger iPhone now. The proof of that will be within the next year when they bring out the larger iPhone. If there is no market for it it won’t happen. Right? But there is a market and it will arrive. Late. And all you people who think it isn’t needed will be wrong. Period. You can iCal this one.

    3. In addition, Apple said they would never build a 7″ iPad, yet it a smaller iPad was made.

      Apple fans will fiercely defend that point that its a 7.87 ” x 5.3″ screen or 9.4882″ diagonal, yet it was built and its a beauty.

      There is no indication nor reason why Apple will not make a bigger iPhone. Looking at the market, there is room and reason for this too occur.

      Weight and Thinness seems to be more of Apples concerned and meeting a battery life of 10 hours. Each product is around 1/4 thick… Regarding the quality of screens and clarity, the processors and speed, manufacturing materials and durability. Competition falls way behind.

    4. I’ll support your position as soon as you can explain to me the differences/advantages of these two models: Performa 6400 and Performa 6410. AND no cheating by looking up the differences!

      Apple almost went under trying to have a model of computer for every price point and every market segment or subsegment.

      It is the old adage (which really does prove true): Please All, Please None. You can’t proliferate your product line and have an efficient production line.

      Exactly where is the break point? I don’t know, and I don’t think anyone else does either.

      IF (an extremely huge IF) Apple comes out with a 5″ device I’d propose that it not be a phone first. It should be an iPad nano (standard iPad 1 resolution on a 5″ device with 16×9 screen size is automatically a “retina” resolution). They could put in the WiFi as a baseline and people could use it as a very large iPod Touch …. or they could include both WiFi and cellular and people could use it as a very small/portable iPad that is a huge phone second.

  3. I want more than a bigger iPhone…

    I want *two* iPhones. One small, one big (just like my iPad mini and iPad 4).

    Here’s the kicker… I want dynamic activation. I want to wake up and put on shorts because I’m going to be on my boat, and thus take my small iPhone that day, or I want to grab my large iPhone and take it too a meeting. I want to be able to dynamically choose which device is the active device for my number (without paying an activation fee each time).

    Take it a step further, and I’d like telephony built into the iPads along with the same dynamic activation.

    I may be the only person who wants this and is willing to buy multiple iPhones and iPads each year, but I’m just saying that it’s what I want, not what I’m expecting (or feel entitled to in any way).

    1. yes, i want telephony on the iPad mini.

      no need for a iPhone biggie ok… silly.

      ONE device that does it all

      at a form factor that is better suited as
      a GPS navigation in the car,
      a camera and editing suite on the go,
      small enough for carrying yet large enough for serious use,
      add 128 Gb or 256 Gb storage or a bluetooth external-portable drive

      iPad mini must INCLUDING telephony services
      this will be the Crowning Apple device not a 5″ phone.

  4. Pretty ironic how Apple invented the do anything phone which was an iPod, game machine, PDA, mini computer, web browser, email machine, still camera, video camera, etc.; but people complain that it can’t do big screen. Apple thinks another device would do that better (iPad). The iPhone size makes mobile computing the most mobile! I tend to agree with Apple about keeping iPad and iPhone separate. Although on second thought, mredofcourse has an interesting idea!

    1. Perhaps that real problem is the cell operators. As mredofcouse could have both worlds if the cell companies would make tethering less expensive and difficult. iPhone in the pocket providing a hotspot for the iPad on the boardroom table.

  5. I only see this happening as a iPad/iPhone hybrid. 4×3 5+ inch display with same pixels as retina ipad. Will run both iPhone and iPad apps. Very high PPi to out do the other “phablets”. Pocketable but would not be an iPhone. Could be called iPad nano or iPad Phone.

    1. listen up Apple – seems a lot of people here are wishing for the same device… One device at the right size to do everything.

      an iPad mini size device with phone abilities

  6. I’m glad the ipad mini came out because it was a form and size factor that was lacking in the product line, The original ipad was too big for me … Similarily … the iphone is too big for a phone and too small as a video viewer … I would love a small iphone or a galaxy size video viewer. It’s the perfect size … as the touch is too small as well … and the ipad mini is too big. It’s great as a tablet size … now we need the correct video viewer and phone size products.

    1. i feel you are right

      the iPad is the PERFECT size for the house – not for going out.
      iPad is the device to replace the PC. It provided the freedomn carry it to the tv room, kitchen, garage, back yard… but for trips and daily use I too find it too big.

      Apple should know this by now, having successful sales with the 11 and 13 inch Mac Book Air out sell the 15 inch by far.

      Small is better when its packed with power.
      Too small and it then becomes tougher to use.

      iPod touch is a powerful device, many wanted a larger touch, but iPad mini stole the show.

      LETS see the same A6 processor placed in a iPad mini with phone capabilities and 256 Gb of memory storage. That will turn heads.

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