An iPhablet?
Cook took a question on the possibility of a larger screen iPhone. He remarked that he thought the Retina display was the overall best on the market, and that there were significant “tradeoffs” present with larger screen phones — lesser battery life, poor color quality, brightness, etc. But this time, he seemed more open than ever to the idea of a larger iPhone in the future:
“In a hypothetical world where those tradeoffs didn’t exist, you could see a bigger screen as a differentiator.”
And that really cuts to the essence of Apple’s current problems. The company, which remains largely dependent on its iPhone, has faced challenges from a whole host of competing phones, most of which run Google Inc (NASDAQ:GOOG)’s Android operating system.
Google Inc (NASDAQ:GOOG)’s made significant improvements to the Android operating system in recent years, but its hardware partners have played an important role as well.
Samsung popularized the concept of a larger-screen phone with its Galaxy S3. It’s Galaxy Note line offers even larger screens, with the Note 2 measuring in at a massive 5.5-inches.
While Google Inc (NASDAQ:GOOG)’s Android has long had the advantage at the low end of the market, the larger screens have served to make Android phones more competitive with Apple Inc. (NASDAQ:AAPL)’s high-end iPhone.
Android is already the dominant global mobile operating system, and a wave of new Android phones could soon overwhelm Apple at the top end of the market. However, by introducing a larger phone, Apple could, to some extent, neutralize one of the biggest draws to Android handsets.
Apple needs new products
It probably isn’t a coincidence that Apple’s share price has languished since last September, right around the time the company released the iPhone 5. Apple is fundamentally a product company, and without new products, it’s hard for investors to get excited about the future.
But that excitement could return in the form of three devices, that if released soon, could have enormous positive effects on Apple’s business. Reinventing the TV would give Apple Inc. (NASDAQ:AAPL) an entirely new market to play in; wearables should strengthen the company’s iOS ecosystem to an extreme degree; and a larger iPhone would help fight off Apple’s top-tier Android competitors.
Investors will need to wait and see if Apple can deliver.
The article A Perfect Storm for Apple Bulls? originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.
Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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