How Significant Could A New 4″ iPhone Be To Apple’s Financials?

Apple (NASDAQ:AAPL) is expected to unveil a new iPhone with a 4-inch screen sometime in March, priced at between $400 to $500. While the smartphone market has largely gravitated towards bigger-screen devices, Apple still appears to be interested in the smaller form factor as it helps the company to stay relevant in the mid-range of the smartphone market without cannibalizing sales of its larger and more profitable devices such as the 6S. It’s likely that Apple will continue to offer its current 4″ iPhone – the iPhone 5S – alongside the new device at a reduced price (possibly $350, down from $450), as it looks to capitalize on demand from emerging markets. So how significant is the 4″ form factor in the context of Apple’s overall iPhone business and how could a new 4″ product mix help?

Have more questions about Apple? See the links below.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Apple 

References:

New 4″ iPhone With 12MP Camera Said to Cost $400-$500, iPhone 5s to Receive 50% Price Cut, Mac Rumours

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