Tim Cook Asked About Larger iPhone at China Mobile Launch

This year there will be a 5-5.5" iPad with LTE. Unlike other iPads, it will have an earpiece and a vibrate motor.

Like other iPads, out of the box it will not be able to make cellular audio calls or send SMS. This enables Apple to offer it at a much lower price than the iPhone because:
- Apple won't have to pay the carriers the high margins they demand
[SHORTENED]

This year there will be a 5-5.5" iPad with LTE. Unlike other iPads, it will have an earpiece and a vibrate motor.

Like other iPads, out of the box it will not be able to make cellular audio calls or send SMS. This enables Apple to offer it at a much lower price than the iPhone because:
- Apple won't have to pay the carriers the high margins they demand
- Apple won't to pay Qualcomm for the voice features to be enabled on their chipset, which makes it cheaper to produce.
(See the difference between the iPad and iPhone for the scale of these costs)

Even if it cost as much as the iPad mini 7.9" (which it won't), it's half the price of an iPhone. iPads are available in much wider distribution channels than iPhones, and they are not locked to a carrier.

FaceTime Audio and iMessage are Apple's solution to phone calls and SMS. And their are plenty of solutions in the App Store that give you a regular phone number and SMS.

Even carriers don't see a future for traditional voice - it isn't part of the LTE standard as there are a plethora of existing VoIP standards - almost all of which work today as apps on iOS! Carriers have been terrified of this impending moment - they become a "dumb pipe" - truly commoditized.

The new iPad's 1356 x 1024 resolution is exactly half the new 12.9" iPad Pro (2712 x 2048) Only one new layout is required to support both the iPad Pro and iPad 5"

Legacy iPad and iPhone Apps Run Letterboxed with minimal border:
iPad Non-retina = 1024 x 768 = 166 pix top and bottom
iPhone 4” retina = 1136 x 640 = 110 pix top and bottom

The new iPad isn't the solution for everyone yet, but its amazing price (16GB ~US$399) for something that isn't last year's model, sold through retail channels, not carriers, and larger screen will drive phenomenal sales.

In less than 4 years the iPhone and iPod touch will be discontinued. The iPad 4" LTE will replace the iPhone. The iPad 4" WiFi will replace the iPod touch.

iPad is what Steve Jobs intended the iPhone to be named in the first place.

We weren't really ready for that as they had to be named relative to things we already knew - a phone (iPhone) and and iPod (iPod touch).