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Why Apple is making the iPhone 6 bigger?

Rumours suggest that the iPhone 6 will have a larger 4.7 to 5-inch display. So why exactly is Apple doing this?

After long standing firm, the size of the iPhone looks to gradually be growing larger with each new iteration, but why? Apple’s answer, plain and simple, it has to. Amidst the latest legal spat between Apple and Samsung, the California-based company has produced confidential documents which provide insight into its analysis of the future of the smartphone market. The documents show that the growth of the iPhone is slowing down, primarily due to competitors offering larger smartphones for less cash.

Apple graph 1

There’s no growth in the 4-inch phone market for devices that cost more than $300 (£181). In 2012, the growth rate of 4-inch phones fell to 74 per cent from 107 per cent in 2009. In 2013, the growth rate fell significantly to just 26 per cent.

Apple says that the strongest demand is coming from less expensive and larger screened smartphones. It believes carriers have a strong interest in capping iPhone’s due to either ‘unfriendly’ policies, high shares, subsidy premiums, or lack of alignment with the rest of the market.

What’s more, according to Apple, competitors have improved their hardware and in some cases their ecosystems, bringing the fight home. It also made reference to companies spending ‘obscene’ amounts of money on advertising and/or carriers to gain traction. Who could it possibly be referring to?

Apple graph 2

So, what exactly can Apple do? In the States, you can currently buy an iPhone 5C at Virgin without a plan for just over $300 but because you’re then locked to Virgin, it is likely they will be subsidised. Finding a 4-inch iPhone for under $500 (£301) will be very hard on the open market.

It is much more likely that Apple gives the people what they want and decides to sell a bigger iPhone 6 at its current market price.

Does a bigger iPhone sound good to you? Share your thoughts with us in the comment section below.

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