Larger iPhone 6 May Cause Massive Spike in Upgrades, Lure Android Users

Apple's upcoming iPhone 6 is widely rumored to include a larger display, which could encourage a significant number of users to upgrade in 2014, according to analyst Brian Marshall of ISI Group, who released a note to investors today.

Echoing past iPhone 6 rumors, Marshall suggests Apple will release two versions of the phone, one with a 4.7-inch screen and one with a 5.5-inch screen. The launch of two phones, both of which offer a total redesign of the existing 4-inch iPhone 5s, could spark a massive upgrade cycle.

iphone6-sizes
Apple's current installed base is estimated to be at 260 million users, and ISI Group calculates that half of today's iPhone purchases are made by upgraders, users who are upgrading their iPhones from an existing iPhone to a new version of the product.

ISI indicates that while the upgrade rate (percentage of installed base upgrading devices in a given quarter) was at 10 to 11 percent in 2011–2012, it has now dropped to approximately 9 percent because users have fewer reasons to upgrade with the iPhone 5c and 5s not introducing any significant design changes.

iphone6upgrades
Peak quarters have seen upgrade rates of 12 to 14 percent, and ISI expects a similar upgrade rate during the second half of 2014 when the iPhone 6 is launched, resulting in a higher number of sales. An iPhone 6 with an increased screen size may also lure customers who have switched to Android from the iPhone because of the latter's lack of a large display.

"Large-screen envy" is prevalent among the iPhone installed base and we believe a ~5” form-factor iPhone would spark a massive upgrade cycle as well as many "Android switchers" returning back to the iPhone (we refer to this as the “mother lode” of all Apple upgrade cycles).

Citing both "large-screen envy" and "pent-up demand" ISI Group suggests the new iPhone 6 models could result in an extra $3.00 earnings per share following release in the second half of 2014.

Higher demand for an iPhone during a redesign year is not unreasonable, as it has now been two years since the 2012 introduction of the iPhone 5. While the iPhone 5s included multiple internal improvements and the Touch ID fingerprint sensor, it retained the same 4-inch display and design of the iPhone 5, as did the iPhone 5c, which was just a repackaging of the existing model.

Top Rated Comments

ZacNicholson Avatar
98 months ago
if bigger means more upgrades then my gf would have left me years ago for a bigger man :D
Score: 32 Votes (Like | Disagree)
spyguy10709 Avatar
98 months ago
I'd buy it...

Honestly, iOS, with it's strong App Store, and high build quality - on a bigger screen - is perfect for me.
Score: 26 Votes (Like | Disagree)
keysofanxiety Avatar
98 months ago
if bigger means more upgrades then my gf would have left me years ago for a bigger man :D

I thought the same, and then I realised she was using the Android ecosystem behind my back. I caught her in bed texting with a Note 3. "It's not what it looks like!" she gasped, holding her hands over the stylus to cover the shame of it.

We argued, and inevitably it became my fault.

"Well, maybe if you let me customise things now and then", she grumbled, sliding in an SD card to demonstrate this. "Being with iOS, being with you ... It's just the same thing over and over again. I'm bored. I'm smothered!"

"Fine!" I roared, holding my home button in defiance. "Siri -- delete contact: 'girlfriend'."

"I'm sorry", Siri replied: "I don't understand "repeat combat girlfriend".

:(
Score: 25 Votes (Like | Disagree)
MacFather Avatar
98 months ago
Deleted.
Score: 20 Votes (Like | Disagree)
tooloud10 Avatar
98 months ago
A [significantly] larger screen is the only Android feature that I would like to see on the iPhone.
Score: 17 Votes (Like | Disagree)
longofest Avatar
98 months ago
An iPhone 6 with an increased screen size may also lure customers who have switched to Android from the iPhone because of the latter's lack of a large display.

In the meantime, Apple just gives up on its existing users who actually appreciate the iPhone's smaller size?

Are there no rumors to indicate that Apple will keep a model with the existing 4" screen?
Score: 16 Votes (Like | Disagree)

Top Stories

iphone 12 colors 2021

iPhone 12 Colors: Deciding on The Right Color

Thursday November 5, 2020 8:35 am PST by
The iPhone 12 and iPhone 12 Pro arrived last October in a range of color options, with entirely new hues available on both devices, as well as some popular classics. The 12 and 12 Pro have different color choices, so if you have your heart set on a particular shade, you might not be able to get your preferred model in that color. iPhone 12 mini and iPhone 12 The iPhone 12 mini and iPhone 12...
iPhone 13 Dummy Thumbnail 2

Full iPhone 13 Feature Breakdown: Everything Rumors Say We Can Expect

Tuesday August 31, 2021 7:50 am PDT by
With the launch of Apple's iPhone 13 lineup believed to be just a few weeks away, we have compiled all of the coherent rumors from our coverage over the past year to build a full picture of the features and upgrades coming to the company's new smartphones. For clarity, only explicit improvements, upgrades, and new features compared to the iPhone 12 lineup are listed. It is worth noting that...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
macbook air deals

Deals: Amazon Drops Price of 256GB M1 MacBook Air to New Low of $849.99 ($149 Off)

Friday August 27, 2021 6:16 am PDT by
Amazon today introduced new low prices on the M1 MacBook Air for both 256GB and 512GB storage options. To start, you can get the 256GB model for $849.99, down from an original price of $999.00. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Only Silver and Gold are...
iCloud General Feature

iCloud+'s New Custom Email Domain Feature Now Available in Beta

Wednesday August 25, 2021 7:48 am PDT by
Starting with iOS 15, iPadOS 15, and macOS Monterey, users with a paid iCloud+ storage plan can personalize their iCloud email address with a custom domain name, such as johnny@appleseed.com, and the feature is now available in beta. iCloud+ subscribers interested in setting up a custom email domain can visit the beta.icloud.com website, select "Account Settings" under their name, and select ...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
maxresdefault

New MacBook Pro Models Coming at WWDC, Suggests Leaker

Monday May 24, 2021 1:27 pm PDT by
New MacBook Pro models are coming at WWDC, according to leaker Jon Prosser who has a mixed track record when it comes to predicting Apple's plans. Subscribe to the MacRumors YouTube channel for more videos. Prosser provided no additional information, but there are new 14 and 16-inch MacBook Pro models in the works. The new MacBook Pros will feature the most radical redesign to the MacBook Pro ...
omg lightning cable comparison

Security Researcher Develops Lightning Cable With Hidden Chip to Steal Passwords

Thursday September 2, 2021 6:59 am PDT by
A normal-looking Lightning cable that can used to steal data like passwords and send it to a hacker has been developed, Vice reports. The "OMG Cable" compared to Apple's Lightning to USB cable. The "OMG Cable" works exactly like a normal Lightning to USB cable and can log keystrokes from connected Mac keyboards, iPads, and iPhones, and then send this data to a bad actor who could be over a...
ted lasso notchless phone

No, That Notchless iPhone Spotted in 'Ted Lasso' Isn't the iPhone 13

Tuesday August 31, 2021 2:15 am PDT by
Recent sightings of a notchless iPhone in highly popular Apple TV+ comedy "Ted Lasso" have led to sensational headlines suggesting this is a canny bit of product placement on Apple's part and that the iPhone 13 will be notchless. In actuality – and this could go without saying – the phone in question is very likely just showing a poorly superimposed display added in post-production. Notchless ...
calculatorapp

iOS 11 Bug: Typing 1+2+3 Quickly in the Calculator App Won't Get You 6

Tuesday October 24, 2017 2:03 pm PDT by
A bug in the built-in Calculator app in iOS 11 is getting some major attention this week, despite the fact that it's been around since iOS 11 was in beta testing. At issue is a calculator animation that causes some symbols to be ignored when calculations are entered in rapid succession. You can try it for yourself: Type 1+2+3 and then the equals sign into the Calculator app quickly. Due to...