If Apple were to do what seems to be impossible and launch an iPhone with a display of around 5 inches, it would be the upgrade of the year.
Many owners of iPhones are smitten by what has been termed as large screen envy for Android handsets that compete with Apple. In a note to investors analyst Brian Marshall said that he thinks a larger iPhone would drive significant updates among owners of the iPhone and they would perhaps convert some Android users.
The current iPhone installed base is 260 million users and this is equivalent to the last seven quarters of sales of the iPhone. The analyst also said that just over half of the sales of the iPhone today go on upgraders.
In his estimate around 9% of existing iPhone users upgrade to a newer model during the average quarter. He said the number had dropped as the iPhone market continues to grow with it hitting around 11% in 2011 and 2012.
Marshall said that he thinks around 14% of iPhone users choose to upgrade to a newer handset. He went on to say that a similar update for the iPhone 6 in the second half of this year is expected.
Marshall said that if Apple launches two new models of the iPhone it would be better for the market. He said that perhaps Apple will launch a handset with a display of 4.7 inches and another with a display of 5.5 inches.
He says that there is a pent up demand for a larger iPhone and says that new models could bring in around $3.0 drive in earnings per Apple share.
Marshall is just one of the many investors who think that Apple could launch a larger version of the iPhone this year. Andy Hargreaves from Pacific Crest said that Apple could launch a device with a display of 4.7 inches with a price tag starting at $299.
The iPhone 5S and 5C has a display of 4 inches. If Apple boost up the size of display of the iPhone 6 it would be just the second time that they have done so, since the original iPhone launched with the 3.5 inch display.
We have heard reports that the iPhone 6 could arrive with a display of 6 inches across the diagonal. However any analyst at KGI Securities said that Apple would not offer an iPhone with a display larger than 5 inches. Apple is committed to launching a phone that people can use with one hand.
