The next generation iPhone will have a larger 4-inch display, according to the Wall Street Journal, trending with consumer interest in bigger displays.
The Cupertino, Calif.-based company is ordering larger displays from its Asian suppliers as it prepares to start production on the handset next month. Analysts believe the new iPhone will launch in the fall.
A 4-inch display in the next-generation iPhone would be the biggest physical change to Apple's smartphone since it originally launched in 2007. The iPhone has always featured a 3.5-inch screen, but Android manufacturers have continued to push the envelope when it comes to the display size of smartphones. Many smartphones now feature 4.3-inch screens, and others like the Samsung Galaxy Nexus and the upcoming Galaxy S3 sport 4.7-inch displays.
Apple doesn't seem interested in increasing the size of the iPhone screen too much and blurring the line between smartphone and tablet. A bump to 4-inches will make the device more formidable at media-related tasks like watching videos and playing games, while still keeping the overall size of the device the same.
A move to a 4-inch screen may be an external change, but it could present problems for developers under the hood. Developers created more than 200,000 apps in Apple's App Store to run on a 3.5-inch retina display. Apps on the new iPhone will have to run with black bars until developers issue updates to avoid pixilation.
Still, while a 4-inch iPhone could be a bit of a headache for developers, it is a decision that will pay dividends for Apple. Increasing the size of the device's display gives owners of the 4S plenty of reason to upgrade, as well as get some Android users who were holding out for a larger screen to make the switch to an iPhone. As long as there are millions of people buying Apple's new handset, developers won't mind working a bit harder to make sure their apps run well on the device.
The difference between 4 and 3.5-inches may seem small, but for Apple, it's very, very big.
T-Mobile is working with Ericsson and Nokia-Siemens on a $4 billion plan to build out its LTE network, hoping to carry the iPhone 5 and keep up with competition.
The Bellevue, Wash.-based company is also expanding its HSPA-plus network, which will allow the iPhone 4S to run at 4G levels speeds.
T-Mobile's network upgrade puts it in a better position to land the next-generation iPhone, as well unlocked versions of the handset. Customers can use an unlocked iPhone on the carrier's network, but the device's data speeds are much slower than if used on Verizon, AT&T or Sprint's services.
An iPhone-compatible HSPA-plus network will allow the 4S to run at the fastest speed possible.
The 4S's ability to run at its maximum speed at T-Mobile may draw some iPhone customers to the carrier, but the company still does not offer the device at a subsidized price. Apple has resisted officially offering the iPhone at T-Mobile, but the carrier's plans to rollout an LTE network next year may help its chances of getting the next-generation version of the device.
Analysts expect Apple's next iPhone to be powered by LTE. Although there is no confirmation a new iPhone would come to T-Mobile, the carrier is at least keeping itself in the running by having its network up to date. Apple's smartphone has been the source of major booms at AT&T, Verizon and Sprint, and T-Mobile suffered mightily without it. The ability to offer a new iPhone would go a long way in helping the fourth-place carrier level the playing field with its competition.
Regardless of whether Apple and T-Mobile can work out a deal to offer the next iPhone or not, the network upgrades are still a good step for the carrier. The improvements to the HSPA-plus network will make current devices even faster and LTE service means T-Mobile will be a likely landing spot for top-of-the-line Android and Windows Phone devices in the future.
Still, while T-Mobile is taking the next step with its network, the company may always be behind the pack if it can't offer the iPhone.
Samsung's smartphones and tablets are pushing it closer to Apple-level profits, and its strategy of faster, cheaper and in more hands, may overtake the iPhone and iPad maker.
The South Korean company raked in record profits topping $5 billion by using shrewd tactics, timing the release of its products before Apple's launch. Samsung, which makes about third of what Apple pulls in, plans to keep up the strategy, by selling its Galaxy S3, equipped with a faster quad-core chip, ahead of Apple's iPhone 5.
"Samsung and Apple are out-competing most major rivals, and the smartphone market is at risk of becoming a two-horse race," explained analyst Neil Mawston, comparing Samsung's 30 percent smartphone market share with Apple's nearly 25 percent hold, which dwarfs other competitors.
In addition, Samsung is making inroads in China, helping Android beat out Apple in the region despite high iPhone and iPad demand. The company's success lies largely from contracts it signed with all the major Chinese telecoms, including China Mobile, to gain a broader reach over Apple in Asia. By getting more phones and tablets into more locations, Samsung hopes to saturate the market in areas Apple has yet to reach.
Samsung is also seeing success by releasing a wider array of devices at various price points, making them more affordable to middle-class Chinese consumers. By exploiting Apple's weakness, offering just one high-end device, Samsung's strategy of selling cheaper devices in more developing areas, is giving it more volume, albeit at lower margins.
But Apple has an advantage in the tablet market. Samsung has yet to produce a serious competitor to the iPad, despite recent success of the hybrid Galaxy Note. Samsung is hoping a 10-inch version of its Galaxy Tab 2 will lure customers away from the iPad, but Apple's dominance lies with its apps, which dependent upon Google's Android platform.
Regardless, Samsung is maneuvering itself into a strong position by dominating 4G patent holdings, a tactic that will pay off as rivals look to manufacture and market next-generation 4G products.
Samsung's patent skirmishes with Apple have mostly focused on 3G technology, but Apple will have a much harder time to win legal battles against Samsung's stacked 4G arsenal, giving Samsung a potentially big payday if its rivals use and license its patented technologies.
Not to be outdone, the company is attacking all sides, as it releases a 7-inch version of the Galaxy Tab 2 to compete against the Kindle and Nook. While the Android tablet offers a more robust interface, allowing more freedom than Amazon and Barnes & Noble's devices, the challenge will be difficult since Kindle and Nook are well-established in the niche e-reader market.
Google, meanwhile, is preparing to launch its own branded tablets running on Android, posing another challenge to Samsung. Google's tablets will be aimed at the iPad, by the similar Android interface may be a bigger challenge to the Galaxy line.
The South Korean company is poised to draw closer to Apple. A combination of faster, cheaper products, along with a strong portfolio of 4G patents, gives Samsung an advantage in the smartphone race. But the company will struggle to stand out in the tablet market. Regardless, Samsung's market domination threatens to box out other Apple competitors as well, as consumers increasingly see two main choices for high-end mobile devices.
Sprint (NYSE:S) is seeing its fortunes turn around on the iPhone, but the company's future success lies in its ability to cash in on data services, which is at odds with its unlimited plans.
Apple CEO Tim Cook said he'd "rather settle a patent lawsuit" than fight legal battles to a bitter finish, but a kinder, gentler Apple won't show up in the courtroom.
AT&T built a solid base selling the iPhone, but Verizon gains the advantage with an LTE version, forcing AT&T to shift allegiances to Android or Windows to sustain its success.
AT&T built a solid base selling the iPhone, but Verizon gains the advantage with an LTE version, forcing AT&T to shift allegiances to Android or Windows to sustain its success.
Apple is reportedly working on a low-cost iPhone to launch alongside its iPhone 5 later this year, but the device won't have the same impact as it would a few years ago.
Apple is reportedly working on a low-cost iPhone to launch alongside its iPhone 5 later this year, but the device won't have the same impact as it would a few years ago.
Apple and Samsung are pouring their resources into new flagship phones, in a heavyweight battle emerging later this year -- but why wait to judge when there are so many rumors flying around?
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