Larger iPhone Expected to Spark Massive Upgrade Cycle [Chart]

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Posted March 17, 2014 at 7:01pm by Shalom Levytam

The release of a new iPhone with a larger display would encourage a significant number of users to upgrade in 2014, according to analyst Brian Marshall of ISI Group.

In an investor note relayed by MacRumors, Marshall suggests Apple will release a 4.7-inch and a 5.5-inch smartphone, sparking a massive upgrade cycle.

ISI says that the upgrade rate (percentage of iPhone owners upgrading per quarter) is currently at 9%. That's less than the 10 to 11% upgrade seen in 2011-2012. This is likely because the iPhone 5s isn't seen as a must have upgrade for iPhone 5 owners.

Peak quarters have had upgrade rates of about 12-14% and ISI expects that a similar rate will been seen if Apple releases a larger device in the second half of 2014. They also note that a larger iPhone could lure in customers who switched to Android for the bigger screen sizes.

"Large-screen envy" is prevalent among the iPhone installed base and we believe a ~5” form-factor iPhone would spark a massive upgrade cycle as well as many "Android switchers" returning back to the iPhone (we refer to this as the “mother lode” of all Apple upgrade cycles).

You can read up on the latest leaked iPhone 6 specs here or follow iClarified on Twitter, Facebook, or RSS for updates.

Larger iPhone Expected to Spark Massive Upgrade Cycle [Chart]

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Me - March 18, 2014 at 11:08pm

Fine - build a massive 5" screen that's cheap & easily available for the unwashed masses who buy Android. For those with dough, give us modest current sizing and premium features, battery life and services.

Mishra - March 17, 2014 at 11:31pm

Increasing the screen size doesn't make any sense. Why increase screen size? Other people should have brought/bought an ipad rather than an iphone instead. Comparing iphone5s vs SG5 the latter didn't really innovate something at all. They just added existing innovations (finger print scanner from 5s, water/shockproof idea from sony but i dont know if it did worked out at all, et al) increases their screen size a bit and whoala, called it SG5. Expect the next SG6 will follow what apple will be innovating in iphone6 like sapphire glass display and others (secret). Stick to the plan, Apple should lead innovation.

gamerscul9870 - March 17, 2014 at 11:44pm

It's how fans want a little bit bigger, they want it "phablet" style and not tablet sized, they want it less than 5" and they have been asking and begging for apple and they don't have a choice but to do it.

thequestion - March 18, 2014 at 12:06am

so if everything's already old for you when it comes to innovate, then what's innovation for you? bringing new tech from outpace? lol.....your comments are out of context!!!

Mishra - March 18, 2014 at 12:28am

I've heard and read lots of these kinds of comments two yrs ago or even a year ago before they released fingerprint scanners and waterproof devices and look what we have now, people just need to think of something different then work on it, not work on something thats already been developed. That whats separates apple from other devices. Well also sony for that kind of matter.

gamerscul9870 - March 18, 2014 at 12:40am

Now that's smart talk. Perios.

Period*.

SCsunman - March 18, 2014 at 4:50pm

Wow! I was not aware that Apple had incorporated a phone into the iPad. Duh! Many people are in search of an acceptable all-in-one device, albeit with huge tradeoffs. The Note 3 is really too large, but I almost pulled the trigger on that one, and the Mega is just out of the question size wise. I have anxiously been awaiting and hoping for an iPhone with a minimum screen size of 5.5 inches. We shall see if it happens. If not, I'm off to Note 3 land.

MayiMbe - March 17, 2014 at 10:45pm

The 4.5" is large enough. Just like an HTC I once had. Anything larger is a phablet and they suck. Though my 5S is still a little too small. Any mention on battery life? Option in size is a good thing.

gamerscul9870 - March 17, 2014 at 11:13pm

Galaxy logic of increasing size this big serving no purpose.

Dragan - March 17, 2014 at 8:22pm

Fully agree. I switched to Nexus 5 only because I needed a phone with bigger/better display. I will gladly switch back to iPhone Air with 5.5" screen.

Meee - March 17, 2014 at 8:21pm

Yey! Now we would be able to play ping pong with the iphones too not just with the samsung ones!

gamerscul9870 - March 17, 2014 at 8:10pm

Exactly why I am on tmobile.

6italia0 - March 17, 2014 at 7:10pm

I don't mind the 4" screen at all, I did love the 4.7" screen on my Htc one M7, but didn't ever care too much for stock android as it's just not as customizable as iOS, but what I would like to see is a 128GB option, 64GB is ok, but I always find myself running out of space while my 128GB iPad mini retina has all my songs, Cydia tweaks and apps and still has 64.4GB left over. Even if there isn't an iPhone 6 and just a 5S w/128GB that alone is enough for me to upgrade.

gamerscul9870 - March 17, 2014 at 7:27pm

Exactly, it has weatherboard for using old icons and hundreds of other styles, and job gives way more android doesn't have.