The ongoing legal battle between Samsung and Apple has resulted in sharing of internal Apple documents that otherwise would never become public knowledge. The slides, provided by Re/Code via 9to5Mac, were from a presentation that looks to have taken place in April, 2013. The slides reinforce the persistant rumors that the iPhone 6 will come with bigger displays, possibly different models offering either a 4.7-inch and 5.5-inch display.
A slide with the title “Consumers want what we don’t have” shows tremendous growth in smartphones with a 4-inch plus display size. Phones in the sub-$300 price point with a display larger than 4-inches showed the largest growth. Apple’s current line-up features the lower-cost iPhone 5c and iPhone 5s. Both are priced well above those numbers, offering competitors a major advantage in that key market.
So in April of last year, it was evident within Apple that demand was high for less expensive and large screen smartphones. At the same time, Apple has been taking notice of competitors who have been improving their products with ‘drastically improved hardware’ and ecosystems. Likely a reference to Samsung, the slides mention competitors ‘spending obsense amounts of money on advertising and/or carrier/channel to gain traction‘. It appears that Samsung and others were not only hitting a high growth market, they were spending heavily to increase awareness of their products.
Last year, Apple responded to consumer demand for an inexpensive iPhone by releasing the $99 on-contract iPhone 5c. With an off-contract price of $549, it’s far removed from being cheap. It remains to be seen just how successful the iPhone 5c has been in addressing the low-end market. The other key growth area should get addressed later this year, that is if Apple relents and releases the iPhone 6 with larger screens. If anything, competitors have doubled-down on big screens at attractive price points. Last year’s darling amongst Android phones was the 4.7-inch Moto X, available off-contract at $349.99.