Apple Analysis Reveals That Consumers Want Larger Displays, Cheaper Smartphones [Charts]

POST

MAIL

Posted April 6, 2014 at 5:49pm by Shalom Levytam

Apple determined that screen size and price were the reasons for the iPhone's slowed growth rate, according to internal documents that have surfaced in the company's new trial with Samsung.

Apple Analysis Reveals That Consumers Want Larger Displays, Cheaper Smartphones [Charts]

This chart shows that iPhone Y/Y unit growth has slowed from 109% to just 8% in FY '13 Q3.

Another slide asks 'So what is going on?'. Factors are separated into Consumers, Carriers, and Competitors.

Consumers:
● Strongest demand coming from less expensive & larger screen smartphones.

Carriers:
Carriers have strong interest in capping iPhone due to one or more factors...
● High share
● Subsidy premium
● "Unfriendly" policies
● Lack of alignment

Competitors:
● Competitors have drastically improved their hardware and in some cases their ecosystems.
● Spending "obscene" amounts of money on advertising and/or carrier/channel to gain traction.

Finally, the last slide declares that "Consumers want what we don't have". From CY'11 to CY'12 the smartphone market grew 228M units. Apple determined that the growth either came from devices under $300 or from devices over $300 that have a display larger than 4-inches, nether of which Apple had a product offering for.

Apple is widely rumored to be releasing a larger 4.7-inch and possibly 5.5-inch smartphone later this year. Please follow iClarified on Twitter, Facebook, or RSS for updates.

[via Re/code]

Get the iClarified Daily Newsletter

Apple news, rumors, tutorials, price drop alerts, in your inbox every evening, free.

Unsubscribe at any time.

Meh - April 7, 2014 at 9:58am

There was time when Apple was able to show that what they made is exactly what consumers want, even when consumers didnt had a slightest idea that its what they want, before they saw it.

angkung - April 7, 2014 at 4:42am

I agree of the price consumer looking for less; however other thing about the price compare to the competitor is apple price is fix and competitor price is not fixed. That why dealer hard to make money unless they bundle with useless and no value added for the consumer. Other consideration is competitor phone present almost everywhere even near jungle but not apple device even you can easily find it on the tree.

It doesnt matter - April 7, 2014 at 3:47am

Make the new iphone a normal size for one hand operation, put in it a quad or better CPU, more ram a 20MP camera, 4k video recording, premium sound, micro sd card, make it unbreakable, non scratchable, waterproof, remove all the crap from appstore, and let Tim Cook know, he is not Steve Jobs. and even if half of the world think Steve uses other people ideas, well, he innovate, right now, iphone is just another phone, and yes, it is my phone, but, they are producing cheap to make more money, no big MP camera, because is more expensive, no anti scratch glass, because is more expensive, no sd card, because can be hacked ( it happen anyway), they give less every time... and we stay here waiting... people become tired... and swap.

gamerscul9870 - April 7, 2014 at 3:50am

How about a concept to understand what you want all in one for what you want?

gamerscul9870 - April 7, 2014 at 3:51am

FYI Tim is Steve as long as the company is alive, he works, he's honest just like the ads like him, and he takes his time to perfect products.

gamerscul9870 - April 7, 2014 at 12:40pm

It all proves how you ditched reality to believe that.

gamerscul9870 - April 8, 2014 at 1:55pm

Because Tim took his place as a backup because he's as smart as him. Apple forever, Steve or not. Either way it adds up to beating the competition. Remember the trial where Samsung paid for damages? It proves it.

vueapp - April 7, 2014 at 2:22am

The smartphone market matured. Which means cheaper smartphones are "good enough" for a lot of people. i stillnthink apple should still stay away from cheap phones. because i do not want a cheap compromised phone. dilutes the brand. truth is apple cannot gain this market. just doesn't fit the company. the biggest problem is apple is a publicly traded company that worries about it's stock prices. if the phone price is too cheap, wait.. no profit, stock drops. if it's too high, wait.. no one can afford, stock drops. means millions to some executives. anyway, do the two iPhone sizes like the iPad to compete with samsung. call it matches, or catching up or copying, don't care. just do it. get working on that iwatch. i'm even fine with a gear fit copy with an apple logo. drop the itv, aint gonna happen. work on some apple home appliances that all sync.

vueapp - April 7, 2014 at 4:02am

I totally agree with these points regarding Apple's strategy.

bara Oba - April 7, 2014 at 1:39am

If iOS could be Jailbreak Free! That affects too

Sam D sok - April 6, 2014 at 10:11pm

Everyone keeps asking for a bigger phone (like me) but then I see people holding them and using them like a phone and it looks ridiculous. The best part is when you see the ladies trying to make or answer a call with one hand...bamm... 200 dollar screen replacements every time.

ShadowOne - April 6, 2014 at 11:28pm

It looked ridiculous to me when I saw people using the Galaxy Note a couple years back. But now it's becoming a norm and I'm definitely not against it - as long as it fits in my pocket.

Wow13 - April 6, 2014 at 8:19pm

So this is Apples way to say, we have other way but to copy Samsung, we have no choice...

gamerscul9870 - April 6, 2014 at 8:21pm

And this is samsungs way to say "the only to act innovative is to make apples every move. What choice do we have?

SJobs - April 6, 2014 at 7:22pm

So after 6 years claiming that the iPhone has the perfect screen size and only for $599 they discovered that people want bigger screens and cheaper phones. What next? They'll discover people want replaceable batteries and SD cards?

gamerscul9870 - April 6, 2014 at 7:28pm

The reason why we claimed 4" is the perfect size is because of one hand use, making it bigger changes nothing it's just something we want for users because they asked for it, why should we claim this perfect? Anyway, why would replaceable battery and ds cards be an option. Just plug in an iDevice to anything else using ds card to save any data onto it all instead of looking for the file to select in order to do it, as for battery it doesn't malfunction or anything, what's the point.

John - April 6, 2014 at 6:11pm

Apple is acknowledging that consumers want larger displays, similar to models from Samsung, Sony, LG, and Motorola. It will be interesting to see how Apple adapts to these market demands.

gamerscul9870 - April 6, 2014 at 6:23pm

I think you meant edge to edge display like HTC as an example.

gamerscul9870 - April 6, 2014 at 6:00pm

By better iOS, what do you mean?

gamerscul9870 - April 6, 2014 at 7:25pm

So jailbreak.

Ray - April 6, 2014 at 5:58pm

I'm over small iPhones, can't wait for the 6. Selling iPhone 5s just to get the 6. Over 4in phone is what I need, and a better IOS... Not much to ask for in a competitive market. Apple for life, though. Only because I have faith ;)

gamerscul9870 - April 6, 2014 at 5:53pm

I understand, if that's what some want, get them what they asked for, no more waiting, I didn't have a choice. Keep it up.