For Apple iPhone, bigger is surely better

“Apple seems headed for a second-half sales bonanza,” Jack Hough reports for Barron’s. “Its forthcoming iPhone 6, expected in late summer or fall, will no doubt feature a handful of new gee-whiz capabilities. But its biggest selling point is likely to fix an Apple shortcoming. The current iPhone is popular, but its four-inch display can cause feelings of inadequacy when viewed next to a five-incher from Samsung Electronics. The iPhone 6 is sure to come in a bigger size, whether it’s 4.7 or 5.5 inches, or somewhere between the two. It will give the iPhone faithful their biggest reason to upgrade in years—and perhaps even lure back some defectors.”

“That’s good news for shareholders. One recent analysis suggests the new iPhone launch could add 10%-15% of earnings upside later this year,” Hough reports. “That should rekindle interest in Apple shares (ticker: AAPL), which now trade at a deep discount to the market. Look for a gain of 20% over the next year, not counting dividends.”

Hough reports, “The company holds $159 billion in cash and investments, equal to a third of its stock market value. Subtract that, and shares go for just eight times earnings. It’s unclear what Apple has planned for all that money. ‘I think there’s a good chance of a special payout,’ says Barbara Marcin, who manages the Gabelli Dividend Growth fund. On March 4, Apple announced the coming retirement of its chief financial officer and the appointment of a new one, Luca Maestri, who has a reputation for shareholder friendliness, according to Cantor Fitzgerald analyst Brian White. ‘We would not be surprised if a larger buyback and higher cash dividend are announced around the company’s… earnings report in April,” he wrote in a March 5 note to investors.'”

Full article here.

MacDailyNews Take:

MacDailyNews iPhone screen size poll
Source: MacDailyNews

Related articles:
Why Apple will benefit from a larger iPhone – March 18, 2014
ISI: Apple on cusp of ‘the mother lode of all Apple upgrade cycles’ – March 17, 2014
Apple’s iPhone 6 will be a monster – March 10, 2014
Apple’s 5.6-inch phablet won’t have ‘iPhone’ branding – report – February 19, 2014
Apple to launch iPhone 6 with 4.7- and 5.5-inch sapphire crystal displays in September, sources say – February 12, 2014
Apple developing two iPhones with bigger 4.7-inch and 5.5-inch curved displays for Q314 – November 10, 2013


  1. When it comes to speculation on Apple products less is better. Don’t really need so called journalists about an iWatch, an iRing, a shoe phone, an iBracelet and all the other crap they try to inflict upon the massed. Of course more intergrity would be a lot better but seems that Apple is really cornering that market in the U.S.

  2. I think the story is entire plausible.

    One way or another, Apple will manufacture a larger iPhone, or risk falling behind the smartphone stakes. I think 4.7″ is a little on the small side but I’ll take whatever they give me at this point in time. 5.5″ sounds a little on the large side and might get a little too close to the iPad mini in terms of screen size.

    Still, if Apple sees reason to release a 4.7″ and 5.5″ iPhone, I’ll definitely take the larger of the two screen sizes, although 5.5″ appears to be a little big in my opinion to easily fit into a trouser pocket. I wear cargo pants to work anyway so a 5.5″ phone isn’t going to present much of a major problem in terms of stowing it away in my pants pocket. The larger screen size, and presumably longer battery life, will be a welcome addition to my iPhone collection.

    The pixel per inch resolution increase does intrigue me though. It’ll definitely put any comparably sized Samsung, HTC and Nokia phone screens to shame. I’m waiting with bated breath to see this new larger iPhone emerge from Apple labs in July.

    1. Not worth it. According to google app store stats the percentage of phone users over 4″ is 15%. There’s a lot of hype but hardly worth fragmenting the entire iOS ecosystem for a 15% gain. They’re only just getting rid of the 4s size. 4″ is a good size for using one handed, most people can reach top left and bottom right corners without shuffling the hand up and down.

  3. Unlike on Facebook and other sites, the flash videos don’t necessarily start blasting sound at you. Here hey do- very disturbing, annoying, a shock to the system. Makes me immediately hit mute or even quit the page- who needs this s***?

  4. I like the size of the 5S better, but it would be nice to give the option to users who do want a bigger phone. If they release a 4.7″ everyone will complain its not big enough, if they release a 5.5″ everyone will complain its too big, phablet. So no matter what they do they are screwed and the stock will drop because of idiots!

  5. The 4″ iPhone was more than adequate for my needs until I started using it as my main GPS unit. A little larger would definitely make it a little easier to read when I’m driving. Of course, I’m really looking forward to CarPlay with my next vehicle, so that will once again become a non-issue. Also, my iPad Air has become my primary device for consumption, so do I really need a bigger phone? Time will tell.

  6. I think the next one will be 4.7″. They usually make a significant change every other year. All the claims that Apple needs to have a much larger phone to compete are crazy. The 5c outsold every large Android phone. If a phone can’t fit in the pocket of a pair of jeans than it’s to big. Most people don’t where jackets all year. Where I live, Florida, you rarely need a jacket. However you need to easily carry a phone everyday.
    I’m betting the 5.5″ is a iPad nano. There are a lot of uses for one. Restaurants, retail, warehouse, hospitals to name a few. Giving an employ an iPod touch sounds like a toy not a tool.

  7. I’d say the writer has something backwards. The folks who feel the NEED to buy bigger have the feelings of inadequacy. The bigger phone… phablet makes them feel less inadequate!

    Despite my failing eyesight I like my “normal”-sized phone just fine!

  8. I’m still using a 4S and haven’t upgraded because even the larger 5S is not large enough. I really don’t want to buy another brand, but my patience will unlikely last beyond this next update cycle.

  9. I for one want a bigger iPhone – tired of squinting to see – no I don’t want another iPad mini – always like the size of that smartphone with the attached pen but couldn’t justify not being able to sync with the rest of my equipment….. will get as soon as available.

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