Next year, Apple (NASDAQ: AAPL) is expected to release three new iPhones. The lowest cost in the group is expected to be a device with a 6.1-inch liquid crystal display (LCD), which means that the display will not be of the best quality than the organic light emitting diode (OLED) in the successor. for this year's iPhone X and its biggest rumored counterpart.
Analyst Ming-Chi Kuo with KGI Securities said in a research note some time ago that the specifications of the 6.1-inch LCD iPhone "would differ significantly from OLED models in hardware and design specifications." At that time, Kuo did not share many details about the differences in hardware specifications, but since then some details have been leaked.
The latest rumor, which comes from Nomura Securities (through BusinessInsider ), is that the 6.1-inch LCD iPhone will not have a dual lens rear camera, as they do the iPhone 8 Plus and the iPhone X of today. Instead, it will apparently have a single lens camera, as today's iPhone 8 does.
At first glance, this is a bit surprising. Considering that double lens cameras are fast becoming relatively inexpensive phones, I thought Apple would have wanted to put this specification on a device that, according to Kuo, will sell for $ 649- $ 749.
However, after Greater consideration, this rumor makes sense. This is why.
Keeping the cost structure under control
So far, the other rumors about the 6.1-inch LCD iPhone point to a device that will have the latest wireless connectivity capabilities (eg, cellular, Wi-Fi) as superior end of the OLED models. In addition, the 6.1-inch LCD iPhone is expected to include Apple's 3D TrueDepth detection camera, as well as a new full screen.
The 3D detection camera will surely add cost, as will the change to a completely new screen, even if the screen is based on a proven and abundant LCD technology instead of a newer and scarcer OLED technology.
In addition, a new report from Kuo, through MacRumors, states that the 6.1-inch LCD iPhone will include a large battery with a capacity of between 2850 and 2950 milliamperes – much more than the iPhone 8 battery of 1821 milliamperes per hour.
Higher battery capacity means longer battery life, but the larger battery will surely add a cost. So Apple could help control the cost structure of the 6.1-inch LCD iPhone with a single lens camera, especially if the camera improves substantially compared to the one found on this year's iPhone 8, rather than a double -lens camera.
It is also important to keep in mind that the 6.1-inch LCD iPhone will be at the bottom of a product stack with three devices. Apple, of course, prefers that potential customers buy a 6.1-inch LCD iPhone than any iPhone, but at the same time, they want to reserve features and capabilities for their more expensive devices to encourage customers to pay a little. more to get better devices.
To that end, if Apple hits the 6.1-inch LCD iPhone with a single-lens camera, then the dual-lens cameras that will surely be on the 5.85 and 6.46-inch OLED iPhones will be clear selling points for those devices.
Some iPhone buyers may not be interested in dual-lens functionality, but given the popularity of the iPhone 7 Plus and iPhone 8 Plus compared to their smaller counterparts, it seems clear that a dual lens camera is something many iPhone buyers are willing to pay more for.
Therefore, in order to encourage customers to buy either the next generation iPhone X or its larger counterpart, Apple can limit the functionality of the dual lens camera to those devices.
Ashraf Eassa does not have a position in any of the actions mentioned. The Motley Fool owns Apple stock and recommends its use. The Motley Fool has the following options: long January 2020 calls of $ 150 on Apple and short of January of 2020 calls of $ 155 on Apple. The Motley Fool has a disclosure policy.