Apple Inc. (AAPL) Can’t Ignore This Trend Forever

Page 1 of 2

The growing phablet trend in certain parts of the world shows no signs of abating any time soon, and that’s something that Apple Inc. (NASDAQ:AAPL) can’t ignore forever. On the domestic front, the iPhone maker has just recently become the No. 1 smartphone vendor in the fourth quarter with 34% of the market, according to recent estimates by Strategy Analytics.

Samsung came in a close second for the quarter at 32.3%, though the South Korean conglomerate came out on top for the full-year 2012. Much of Samsung’s success here and abroad has been linked to its broad product portfolio, offering every imaginable configuration of screen sizes to cater to a wide range of markets, including supersized phones that are now lovingly known as phablets.

Apple Inc. (NASDAQ:AAPL)

Apple Inc. (NASDAQ:AAPL)’s recent iPhone 5 was the first time the company increased the display size, but it still remains notably smaller than Samsung’s Galaxy S III and Galaxy Note II devices. Is Apple wrong?

What comes down must go up
It seems inevitable that Apple Inc. (NASDAQ:AAPL) will soon expand the iPhone lineup into a full-fledged family affair, and I expect the company to eventually expand both downmarket with a lower-cost model as well as upmarket with a larger-display model. The real question is when (not if) will Apple make these important moves to reinvigorate iPhone growth?

KGI Securities analyst Ming-Chi Kuo thinks the lower-cost iPhone is coming this year alongside the iPhone 5S. The lower-cost model will likely be made out of polycarbonate and come with six different color choices. Instead of using an older display, Kuo thinks it will carry the same 4-inch Retina display as the flagship.

Taiwan-based Kuo has an impeccable track record with accuracy when it comes to Apple Inc. (NASDAQ:AAPL) rumblings, so a lower-cost iPhone seems like it’s in the cards for a 2013 launch. What about the bigger model?

The next big thing
Since Apple Inc. (NASDAQ:AAPL) just transitioned to 4-inch displays, it seems like it might be a little while before it adds another display size to its arsenal. Tim Cook’s comments on the most recent conference call also seem to reinforce the idea that Apple will stick to its guns for a while:

The iPhone 5 offers as you know a new 4-inch Retina display, which is the most advanced display in the industry and no one comes close to matching the level of quality as the Retina display. It also provides a larger screen size for iPhone customers without sacrificing the one headed ease-of-use that our customers love. So, we put a lot of thinking into screen size and believe we’ve picked the right one.

Apple continues to emphasize the one-handed usage model, but it’s probably the only major smartphone vendor to not offer larger models now.

Both Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Ltd (NASDAQ:BBRY) are pinning their turnarounds on new models that feature larger displays. Nokia’s Lumia 920 carries a 4.5-inch display and BlackBerry’s Z10 features a 4.2-inch screen. Nokia’s Lumia family had a healthy holiday quarter with 4.4 million units sold and the Z10 is seeing strong initial interest in the U.K. and Canada (it doesn’t launch in the U.S. until March).

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!