When the iPhone 6 first came out in 2014, there were significant shortages of the bigger model with a 5.5-inch screen. Demand simply outstripped supply.
This fall, when the iPhone 7 comes out, don’t expect the same crunch and month-long wait times.
According to Credit Suisse analyst Pauline Chen, who cites supply chain research, Apple will make a larger proportion of iPhone 7 Plus compared to the standard-size iPhone than it has for the past two years, which has hovered around 30%.
The bigger iPhone coming out next month will be more technologically advanced than the smaller model. (It’s also going to be $100 more expensive.) It’s expected to have a camera with two lenses, which means it will be able to zoom, and it can produce brighter, more detailed photos, according to Bloomberg.
“We expect 5.5″ to account for a bigger portion in the [holiday quarter] … We think Apple has incentive to maximise the volume of its premium model (5.5″), given its recent results (iPhone blended ASP down 10% YoY), Samsung’s success in the premium GS7 Edge model (accounting for half of total S7 volume, according to IDC), and the much stronger July sales growth by Largan/Flexium (up 28% mum, vs iPhone supply chain up 10-15% mum). As a result, we expect the new 5.5″ model (with dual camera) to account for 35-40% of new models’ volumes in 4Q16E (assuming there are no longer supply constraints).”
There’s one caveat: the supplier selling the dual camera module to Apple might not be able to make enough to meet Apple’s order.
Apple is expected to launch two new iPhones next month at an event in the Bay Area, along with new Apple Watches and MacBook laptops.
But the iPhone is Apple’s moneymaker, accounting for about 70% of its earnings, and its reception will be closely watched, especially since iPhone sales have dropped on an annual basis for the past two quarters.
- A re-engineered home button that uses motors to simulate a click.
- Significantly improved waterproofing.
- Upgraded hardware and components.
- No headphone jack — Apple will include earbuds that plug in through the Lightning charging port or a dongle instead.
It will probably look like this: