Apple knows its customers want what the company doesn’t have, and it admits the smartphone market is growing because of two product categories which the iPhone does not serve.
Internal presentation slides revealed as part of the iPhone-maker’s revived legal dispute with Samsung claim handsets either priced below $300 (£180) or with screens larger than four inches are the most popular - and the iPhone is neither of these.
Under a slide titled “Customers want what we don’t have,” Apple admits the market for 4in smartphones costing less than $300 is shrinking, suggesting a larger iPhone will be crucial if the company wants to lure buyers away from Samsung, HTC, Sony and Nokia, all of whom offer larger handsets.
The slides tally perfectly with numerous reports claiming Apple is working on a pair of larger iPhones due to be announced later this year. It is widely believed that Apple will produce iPhones with screens of 4.7in and 5.5in, although it isn’t yet known if the new phones will arrive at the same time. We expect Apple to announce a new iPhone in September or October this year.
But it isn’t just consumers wanting larger or cheaper phones, because Apple believes the mobile networks are keen to cap iPhone sales. Apple admits its rivals have improved their hardware and software offerings, while spending “obscene” amounts of money to be promoted by mobile networks.
It is very unlikely that Apple will sell a phone below $300 - the iPhone 5c is as far as anyone expects the company to go in a price war - so the answer is simple: Apple must produce a larger iPhone.