Bigger-screen iPhone 6 may mean smaller sales at Apple — for now

“Apple may not have sold as many iPhones as investors and analysts hoped last quarter — even with the addition of China Mobile as a distribution partner in the world’s largest smartphone market — because some customers may already be holding off and waiting for the larger-screen iPhone 6 rumored to be released later this year,” Richard Nieva reports for CNET.

“Analysts on average are expecting Apple CEO Tim Cook to deliver $43.5 billion in sales, and profit of $10.19 a share, when the company reports second-quarter earnings after the market closes Wednesday. That’s down from the $43.6 billion in sales and $10.09 a share in profit the company had in the same quarter a year ago,” Nieva reports. “A big part of the drop has to do with the iPhone, Apple’s biggest moneymaker at more than half of sales. Apple has released a new iPhone every year since former CEO Steve Jobs introduced the device to the market in 2007. Consumers may be holding off on buying the current iPhone 5s and iPhone 5c, which each sport a 4-inch high-definition display, as they wait for larger-screen models in the second half of the year. Cook and company are reportedly gearing up to announce two new iPhone 6 models with display sizes of 4.7 and 5.5 inches.”

“‘We expect a slight pause in near-term iPhone sales due to the faster global ramp of new models in late 2013 as well as anticipation of the larger form-factor iPhone 6,’ said Brian Marshall, hardware and data analyst for International Strategy & Investment Group,” Nieva reports. “It’s not just an iPhone pause that may be hurting demand for Apple phones. The company’s biggest rival, Korean handset maker Samsung, may have wooed iPhone users over to its popular Galaxy smartphone with its new S5 model.”

MacDailyNews Take: Nieva just lays that last sentence out there without a foundation or any facts to back it up.

Full article here.

MacDailyNews Take: Korean handset maker Samsung wooed owners of the world’s best smartphones with their inferior 32-bit plastic antiques saddled with a malware-ridden and fragmented operating system and a second-class ecosystem? Got any proof of that, Richie? We ask because all of the hard data we’ve seen shows significantly more people switch to Apple iPhones from Android than from iPhone to fragmandroid.

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34 Comments

          1. Apple’s iPhone 5c is made from better and better-feeling materials than its competitors. There’s nothing wrong with using a polycarbonate casing to make a phone. But the majority of plastic handsets just plain feel cheap. Apples an oranges may both be fruit, but that doesn’t mean they’re the same.

            G4Dualie is talking about Apple’s top-of-the-line smartphone with a larger screen outshining cheap-feeling plastic smartphones with large screens, such as Samsung’s top-of-the-line Galaxy S5. It has nothing to do with the iPhone 5c. Quit trolling.

      1. Which plasticware? There is principal difference between iPhone 5C which is made of metal and covered by plastic for marketing/positioning purposes and all the other phones by competitors which are made of plastic.

  1. Brian Marshall is too smart to make that last sentence. That is the writer doing that. Brian Marshall is well aware of the slow sales of the S5. Marshall is not an Apple fanboy or Samsung fanboy, nor should he be. The lack of a larger iPhone has left many sales on the table. And this will not be a good earnings report this evening.

      1. 15% of Android phones not larger iPhones. There is a difference. You cannot evaluate the sales of large phones until Apple competes. The observation of current sales of larger phones is useless. It means nothing.

        1. On the same token you will not be able to evaluate the sales difference of a large screen iPhone to a small screen iPhone unless there are 2 variants of the iPhone 6. Inevitably analyst will look at the new model and compare sales to the previous model still produced.

          My prediction is 1 new model, 4.7” iPhone 6, and they will keep the iPhone 5c.

          I think they learned some lessons releasing 2 new models (5c, 5s) last time.

      2. You are playing a semantics game my friend. Large phones are 15% of all smartphone sales… Ok great, what is considered ‘large’ in this scenario?

        Here’s a better metric – Phones that are larger than Apples offering – Larger than 4″ is what % of sales?

      1. Ok when Apple releases a bigger screen iPhone 6 in the near future, then analysts would want an iPhone 7 can cough up iMoney, iGold, iCar, iGourmet-dinner, iBeautiful women, iHandsome-men, etc. That’s when Apple would need to perform iMagic.

    1. This is just simply not true. I’m sorry, but don’t project your hand size and preferenes on the billions of the people in the rest of the world. I’m a normal sized man with normal (and considered by some small) hands and a 5″ phone fits perfectly fine in my hands for 1 handed use however 4.7 and 4.8″ phones fit in my hand and are leagues more comfortable. The 4.7 variant actually being more comfortable than the 5″ AND 4″ of my current 5S. Guess what? I work in a corporate environment and it’s slacks and tie all day every day for me and a 4.7″ phone (provided by work) fits perfectly fine in my slack pants too… Again don’t make up data masquerading it as indicative of the whole human race just because something isn’t your preference.

    2. “Human fingers are too short for one handed operation for a screen that is larger than 4″

      There must be lot of aliens on earth then, as I see many “beings” using larger phones with one hand and all seem to have human sized hands, including me!

    1. Where are you getting that info? That’s not a rhetorical question; I really want to read it because every time I see sales data and market data released it says the opposite; stating that Samsungs sales are growing significantly year of year (starting from the S3, not the S2). And the S4 being the biggest seller so far; no idea about the S5 but I hope it’s a flop. Seriously though every time I see this info released it resembles something like below:

      http://www.slate.com/blogs/future_tense/2013/04/26/samsung_smartphone_sales_rise_to_double_apple_s_market_share.html

      Can you point me to charts that say otherwise?

      1. I don’t have any links to sites, most of what I’ve read has been links from twitter over time. Googling galaxy flop should return a lot of results to sift through.
        But as always anything involving samsung/sales/shipments needs to be taken with a grain of salt

  2. I’m one of those holding out for a bigger screened iPhone, I don’t care about how far my fingers reach or one handed operation. I care about the screen being bigger so I can see what’s on it better. My eyes just are not what they used to be. I hate to say it but if they don’t have a bigger screen on iPhone 6 then I’ll have to look at other phone options in the Fall. Sorry Apple, you snooze you lose.

    1. I agree completely with your sentiment about eyesight, but screen size aside, iPhone 6 will serve to remind everyone why Apple is the greatest tech company in the world today. While Samsung was busy futzing around with larger screens, Apple was reinventing the screen.

      Apple is going to deliver a product that will shame the competition for believing they were as equally good, or better than Apple Inc.

      Apple doesn’t compete on features alone, they look to crush the competition’s products by reformulating the whole package.

      I can’t wait to trade in my 4S for a Six.

  3. This happens every second quarter (winter quarter after xmas) for Apple. And yet it’s some big revelation:

    Apple may not have sold as many iPhones as investors and analysts hoped last quarter

    Get off the crack Wall Nut Street.

  4. Analysts on average are expecting Apple CEO Tim Cook to deliver blah billion in sales, and profit of blah a share

    Why?

    Because they have some special insight into Apple that they need to share with others for their benefit in the financial market?

    No.

    Why ARE these analcysts FOR exactly? They usually WRONG. So what’s the point in caring whatever they have to say? Is this really just a magic show for the suckers?

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