Apple is planning to launch a smaller iPhone in order to boost its sales.
Apple is scheduled to launch its novel addition of the small sized iPhone at an event arranged in the headquarters of the company in Cupertino, California. The new version of the iPhone is rumored to be dubbed as “iPhone SE” and according to the sources privy to matter, it has upgraded processor, capability of utilizing Apple Pay, and improved camera.
It is highly expected that Apple will make the most of the event and will siege the opportunity to discuss about the highly accelerated legal battle with the U.S. Department of Justice on the issue of unlocking one of the shooters involved in San Bernardino attacks. The showdown between the lawyers for U.S. DoJ and Apple will happen on Tuesday. The hearing organized before a federal magistrate will hear the statements of both parties about striking a coherent balance between the privacy and security necessary in the current era of smartphones.
The idea of the smaller iPhone was cooked when the company’s blockbuster product, iPhone, recorded a slow growth in its sales. Its fiscal first quarter, which ended in December, showed a mere 0.4% increase in the sale of the company’s core product. This marked the slowest rate of growth for the company since the debut of the prestigious iPhones in 2007. Analysts have first ever projected the decline in the sales of the phone in the current quarter.
In the recent years, the iPhone maker had cultivated colossal profits out of its record sales of larger display smartphones. The company provided the best range of the screens for the consumers who want to watch videos, surf the web, or play games on their smartphones. In short, the phone was the best option to be used as “an entertainment device” too. Now, the tech company is looking forward to get the hold of the consumers who prefer smaller screens for various reasons.
According to the survey carried out in December by Piper Jaffray analyst, Gene Munster, 20% of 1,077 respondents of the survey expressed that they would prefer 4-inch phones. Amit Daryanani, analyst at RBC Capital Markets, speculated that the Silicon Valley business could annually sell 10 to 15 million units of the newly introduced 4-inch iPhone.
Although the bigger iPhones with large display never fails to attract new customers, according to Tim Cook’s statement given to the analysts in January, 60% of the smartphone users who had iPhone 18 months before the launch of bigger phones haven’t substituted their smaller phones with the new larger display. This clearly implies that the opportunity for a smaller phone is wide and bright.
The company will have the revenue flowing when the faithful customers will use the tech giant’s apps and services such as Apple Pay – Apple’s mobile-payment service.
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