Analyst: A Large iPhone Would Be Big in China
While many analysts are still focused on the effect that a low-cost iPhone 5C would have on Apple’s (NASDAQ:AAPL) share of the smartphone market in China, other analysts are already evaluating the potential impact that a rumored larger-screen iPhone could have on the world’s largest smartphone market. Cantor Fitzgerald analyst Brian White, formerly of Topeka Capital, believes a larger-screen iPhone could be an additional boost to Apple’s sales in this increasingly important market.
In a note to investors, White cited a recent Wall Street Journal report that stated Apple “has begun evaluating a plan to offer iPhones with screens ranging from 4.8 inches to as high as 6 inches.” According to White, this report is in line with his own research in China, where he “noticed a growing trend toward consumers purchasing ‘awkwardly’ large smartphones (or ‘phablets’) that were often 5-inches or above.”
He believes these devices are becoming popular as a fashion statement in China, as well as being viewed as a practical way to consolidate the functions of a tablet and phone. White points out that Samsung (SSNLF.PK) initiated this “phablet” trend with its line of Galaxy Note devices and that many other smartphone makers soon followed suit.