KGI Securities analyst Ming-Chi Kuo lately revealed a report claiming that Apple (NASDAQ:AAPL) is getting ready three new iPhones subsequent yr. The first may have a 6.1-inch liquid crystal show and a TrueDepth digital camera system and can apparently be the most cost effective of the brand new iPhones that shall be launched subsequent yr.
Apple can also be reportedly planning a next-generation iPhone X with a 5.85-inch natural light-emitting diode (OLED) show in addition to an even bigger model with a 6.46-inch OLED show.
Since Apple goes to carry two of the signature options of this yr’s iPhone X to a lower-priced LCD iPhone (I believe it is going to be branded merely as “iPhone”), buyers could also be questioning the next: How will it persuade clients to pay extra for the higher-priced iPhone X smartphones if the lower-cost LCD model consists of the important thing promoting factors of the iPhone X?
Let’s dive in.
Kuo’s key remark
Kuo stated that “the new TFT-LCD model will differ significantly from the OLED models in hardware and design specs,” noting that the pixel density on the LCD iPhone’s show shall be a lot decrease than that on both of the OLED fashions.
Using this as a baseline, I can consider a number of ways in which Apple will be capable to differentiate the OLED iPhones from the LCD fashions.
Firstly, I count on the LCD iPhone to make use of an aluminum body, simply as the present iPhone eight and iPhone eight Plus do whereas the brand new OLED fashions will function stainless-steel frames. Stainless-steel frames are pricier and arguably look extra premium than aluminum frames, so clients eager about having the sleekest-looking iPhones will gravitate towards the pricier OLED iPhone fashions.
Beyond that, there’s the truth that the OLED iPhones ought to have better-looking shows total. Not solely will the shows on the brand new OLED iPhones be sharper than the one which’ll be on the LCD iPhone, however the former may have higher distinction ratios (this implies higher picture high quality) in addition to help for high-dynamic vary (HDR) content material.
I additionally would not be stunned to see Apple endow the brand new OLED iPhones with sooner shows that may refresh their contents at a fee of 120 occasions per second (Apple manufacturers such shows “ProMotion”) for a smoother person expertise. My guess is that the LCD iPhone will proceed to make use of a show that may solely replace its contents at a fee of 60 occasions per second.
I would not be stunned to see the telephones differentiated by way of system RAM as effectively (I may see the LCD iPhone packing 3GB of reminiscence whereas the OLED ones may have as much as 6GB) and even by way of processing velocity (Apple may run the chips contained in the OLED iPhones at larger frequencies than it could the one contained in the LCD iPhone).
There are loads of ways in which Apple can meaningfully differentiate the higher-priced iPhones from the lower-cost LCD mannequin whereas nonetheless providing a compelling product with the LCD mannequin. I believe it understands that the typical promoting worth development story is essential to continued iPhone success, so it will not construct a lower-cost product that aggressively cannibalizes gross sales of its higher-end fashions.
Ashraf Eassa has no place in any of the shares talked about. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the next choices: lengthy January 2020 $150 calls on Apple and quick January 2020 $155 calls on Apple. The Motley Fool has a disclosure coverage.