Small iPhone may be Apple’s big idea
Even the tech- savvy have their limits.
Some iPhone fans, typically considered a forward thinking lot, have refused to upgrade to the latest version — in part because they don’t like its larger size, usually around 5 inches. They’ve stuck with their older, 4- inch screens, happily.
They are contrarians, pushing back against Apple and other manufacturers that have touted larger phones, as more people watch video on mobile devices.
“I didn’t feel like there was enough of a draw,” said Lucy Bartlett, 29, who has stuck with her 4- inch iPhone. “I have a lot of stuff in my bag anyway. I don’t need a giant phone.”
Apple appears to be listening. Analysts expect that on Monday, Apple will unveil an iPhone with a 4- inch screen, under the rumored name of iPhone SE. The last time Apple unveiled a phone of that size was September 2013, and Monday’s announcement could get owners of older phones to finally upgrade.
Apple “wants to keep them as users and keep that market,” said Gene Munster, an analyst with Piper Jaffray. “Even if ( a smaller screen smartphone) is not what the trend is, it’s still a measurable part of their busi-
ness.”
Munster said he estimates that 4- inch phones made up about 20 percent of Apple’s iPhone sales in the past year. A newer phone could sell 50 million to 60 million units, bringing in $ 30 billion to $ 35 billion in revenue in the first 12 months, Munster said. He thinks the price for the SE could start at $ 450.
Apple declined to comment, saying it does not respond to “rumor or speculation.”
Although sales of the iPhone 6S and 6S Plus got off to a strong start, including in China, Apple’s total phone sales are flat. In its last quarter, Apple sold nearly 74.8 million iPhones, little changed from a year earlier.
Adoption of the 6S has been slower compared with previous models, according to data from mobile marketing firm Fiksu. New features like live photos ( which capture video before and after a picture is taken), and 3D Touch ( which senses how much pressure a user applies to the screen) weren’t enough to get many people to upgrade, analysts said.
Fiksu analyzed the type of iPhone used to access roughly 4,000 apps. In the first 175 days after its release, the 6S represented 12.4 percent of active devices using apps. The iPhone 6, in its first 175 days on the market, did better, representing 20.8 percent of active devices.
“As much as Apple will hype things up ... in the 6S, it wasn’t so radically different that the people who got the 6 last year have been compelled to upgrade,” said Jeremy Sacco, a director of content and communications at Fiksu.
Bartlett says she hasn’t wanted to upgrade because her iPhone 5 still works. She can still text, listen to music and order groceries from Instacart on that phone, which she picked up more than three years ago. Sometimes she’ll get teased by her friends, who assume she missed their text messages because of her “ancient phone.”
“I still feel like it’s quite a new, fancy phone,” Bartlett said.
Among global iPhones, about 37 percent have 4- inch screens or smaller, according to mobile advertising technology company AppLovin. A newer phone of that size would allow Apple to compete with 4- inch Androids offered by companies like Samsung and Huawei, analysts said.
Apple wants to “prevent people from switching to cheaper Android phones,” said John Krystynak, founder and chief technology officer at AppLovin.
Chemical engineer Gregory Tiede, 58, said if Apple releases a 4- inch phone, he would consider buying one.
Tiede has used a 3.5inch screen iPhone 4S as his personal phone since 2012, carrying it in a holster on his belt. He also has a 4- inch iPhone 5S issued by his company, and he’s been open to the slightly larger screen. He doesn’t think he could do the 4.7- inch iPhone 6S though.
“Screen size always sounds good, but having a bigger anchor on your belt turned me off,” Tiede said.