Apple is expected to introduce a large-screened iPhone 6 with a 4.7-inch model arriving this fall and a 5.5-inch version debuting early next year. Though this large iPhone may cannibalize iPad mini sales, Piper Jaffray analyst Gene Munster does not believe this shift in sales will have a net effect on Apple, reports CNET.

retina_ipad_mini_colors_front_back
In a Monday note to investors, Munster argues that many iPhone owners will accelerate their upgrade to buy the iPhone 6 instead of the iPad mini, while other customers will purchase a bigger iPhone and pair it with an iPad Air. The net effect on Apple is an equal amount of sales even though the distribution among iPad and iPhone models may change with the debut of a larger iPhone.

We note that even at a 5" screen size, the viewable area of an iPad Mini at 7.9" would still be 150% larger than the iPhone 6. Net-net we believe any potential cannibalization would be roughly neutral overall to the model as we believe in some situations users might accelerate their phone update instead of buying an iPad Mini and keep an old phone, while in other cases we might see consumers that purchase an iPhone 6 decide to purchase an iPad Air instead of Mini to increase the utility difference between the devices.

Similar to other analysts, Munster believes Apple will report earnings at the higher end of its own guidance for the second quarter of 2014 with revenues of $44 billion, iPhone sales of 38.5 million units and iPad sales of 21 million units. Munster predicts the current quarter, which will end in June, will be slow for Apple with only 5 percent year over year growth.

"We continue to believe that June numbers are too high given our expectation that there will be no new products in the quarter. We note that given the company's history with guidance, the high-end of Apple's guide is all that matters and we expect the company's high-end of guidance to imply no more than 5% y/y revenue growth. Most importantly, while iPhone will benefit from China Mobile in the first full quarter of iPhone availability, we believe that iPhone unit sales may remain in the low single digits in Jun-13 ahead of the iPhone 6 launch."

Apple will announce its earnings for the second fiscal quarter (first calendar quarter) of 2014 on Wednesday, April 23. The earnings release usually is released around 4:30 PM ET following the close of regular stock trading. The conference call to discuss the earnings report is scheduled to follow at 5:00 PM Eastern / 2:00 PM Pacific.

Top Rated Comments

peteullo Avatar
146 months ago
“If you don’t cannibalize yourself, someone else will”:apple:
Score: 13 Votes (Like | Disagree)
sniffies Avatar
146 months ago
Can't wait for a 13-inch iPhone. I'll sell my MacBook Air then.
Score: 11 Votes (Like | Disagree)
the8thark Avatar
146 months ago
The phablet seems like the best fusion of: tablet phone camera phone and iPod.



You either failed at a joke or if you're serious you really don't get things. A phablet is jack of all trades and master/good at nothing.
Score: 6 Votes (Like | Disagree)
Iconoclysm Avatar
146 months ago
With the different screen ratios, the iPad mini is far more than 150% larger in viewable area than an iPhone at 4.7". If they miss out on details like that...why would I even begin to have any faith in this crap?
Score: 4 Votes (Like | Disagree)
Patriks7 Avatar
146 months ago
I don't understand why a slightly bigger phone would cannibalise the iPad Mini. After trying out some of the competitions phablets and owning the iPad rMini since launch, I can confidently say that a bigger phone cannot replace the experience you get from an actual tablet.

I'm still of the opinion that these phablets are too small to comfortably do anything on them, but they're also too big to comfortably have them on you at all times. That's why I'm hoping Apple doesn't go with anything bigger than the rumoured 4.7, otherwise I'll be staying with my iPhone 5 for a long time.
Score: 3 Votes (Like | Disagree)
Parasprite Avatar
146 months ago
“If you don’t cannibalize yourself, someone else will”:apple:

"But sir, they are going to eat us alive..."

"Not If I eat me first!!!"

"That sounds just crazy enough to work..."

:apple:
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Max Battery Capacity Leaked

Thursday July 3, 2025 5:40 am PDT by
The iPhone 17 Pro Max will feature the biggest ever battery in an iPhone, according to the Weibo leaker known as "Instant Digital." In a new post, the leaker listed the battery capacities of the iPhone 11 Pro Max through to the iPhone 16 Pro Max, and added that the iPhone 17 Pro Max will feature a battery capacity of 5,000mAh: iPhone 11 Pro Max: 3,969mAh iPhone 12 Pro Max: 3,687mAh...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
apple silicon mac lineup 2024 feature purple m5

Apple's Upcoming Macs Listed in New Report

Thursday July 3, 2025 9:09 am PDT by
AppleInsider's Marko Zivkovic today shared a list of alleged identifiers for future Mac models, which should roll out over the next year or so. The report does not reveal anything too surprising, but it does serve as further evidence that Apple is seemingly working on new models of every Mac, including the MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro. Apple is...