“‘Over the last six years, screen size is the lone feature that we believe has demonstrated a consistent ability to drive both volume and pricing power,’ KeyBanc Capital Markets wrote Tuesday. ‘This was evident in the iPhone 6 cycle, where a step-up in screen size drove both pricing and volume, and in the iPhone X cycle, where a larger screen in a similar-sized form factor drove strong pricing power,'” Marino-Nachison reports. “KeyBanc analysts, who have a ‘hold’ rating on the Barron’s Next 50 company’s shares, don’t believe the underlying screen technology—whether, say, a phone uses a liquid crystal or organic light-emitting diode-based display—matters to buyers much. Both, they wrote, ‘offer high quality experiences.'”
“‘Apple’s coming iPhone lineup is likely to maximize the available screen real estate within form factors that will still fit in pants pockets, which suggests we have reached a limit of screen size as an incremental driver of demand. Further, we do not anticipate a new hardware feature that will replicate the pricing power of screen size for the foreseeable future,'” Marino-Nachison reports. “That, they suggest, means Apple will either need to lower prices for large-screen phones — hurting ASPs — or risk losing customers to companies that do.”
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MacDailyNews Take: Apple holds other unique advantages over would-be competitors such as processor speed, security, privacy, ecosystem, etc. Display size is not the only demand driver.