For years, Samsung has been accused of shamelessly ripping off Apple. Well, it might be time for the relationship to work in reverse.
Apple has to copy Samsung's big phone style if it wants to capture the next phase of smartphone growth, suggests Topeka Capital analyst Brian White.
White has been on a tour of Asian suppliers this week.
This morning he reports, "our discussions this week in Taipei and China continue to highlight the need for Apple to launch a larger-sized iPhone to cater to the Asian market," adding, "Essentially, we are being told that the minimum size needed by Apple is a 4.5-inch display on the iPhone; however, a 5-inch to 5.5-inch would be optimal."
Apple made the iPhone 5 taller last year, extending it to 4-inches. It's a nice change of pace from the 3.5-inch screen that was standard on the first five-iPhones Apple released.
But compared to some of the most popular Android phones, the iPhone 5 can feel a bit cramped.
Initially mocked when they came out, the big smartphones from Samsung are slowly gaining acceptance. The 5.5-inch Galaxy Note II looks and feels goofy when making phone calls, but the truth is that phone calls are rarely made on smartphones nowadays.
Since your smartphone is basically a mini-PC, more screen is better.
Apple has done very well against Samsung and its big screen phones. Last quarter, the 3.5-inch iPhone 4S outsold Samsung's 4.8-inch S III.
The concern is that Apple has largely captured all the growth in developed markets with the iPhone. It now has to tackled places like China and India. To win those markets, it may need a different pricing and product strategy.
Topeka's White is one of the most bullish Apple analysts out there. He has a 12-month price target of $888.
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