The iPhone 5 rumor mill is working overtime and next generation iPhone will be completely redesigned and will look more like iPod Touch 4G rather than iPhone 4. Apple’s fifth generation iPhone could be a bigger upgrade than expected and iPhone 5 won’t support 4G LTE networks as we’ve heard before, which is one of the reasons why iPhone 5 could be a bigger than expected upgrade to make it more appealing for iPhone users to upgrade to the new iPhone rather than waiting for the 4G LTE iPhone, which is expected to be launched in 2012……………..
Rumors regarding the iPhone 5 continue to fly fast and furious and a couple of reports from earlier are making the rounds with more claimed details on the next-generation device. Analyst Shaw Wu with Sterne Agee said he has consistently received one question from investors regarding the upcoming iPhone. “Well, it turns out that we are picking up that this interim iPhone refresh in the Fall timeframe could be a bigger upgrade than we expected,” Wu wrote. “We believe this keeps the iPhone fresh and competitive and helps maintain its leadership position.” He said that supply chain sources have indicated that the new iPhone will feature a slightly larger display than the current 3.5-inch screen found on the iPhone 4. The fifth-generation iPhone is also expected to feature the same dual-core A5 processor already found in the iPad 2. In addition, those same sources reportedly said that the new iPhone will feature a similar form factor and size to the iPhone 4, but will sport a thinner bezel. “We believe this makes sense to improve the iPhone experience without making it too bulky as we have seen with models from competitors,” he wrote.
While Wu expects the new iPhone to have a bigger screen and thinner profile, checks within the supply chain have said that the fifth-generation iPhone is not expected to have 4G-LTE high-speed wireless data connectivity. The new technology still has issues with battery life and network coverage, problems that Wu believes Apple will fix at some point in the future. This week, one report claimed that Apple’s next-generation iPhone will become available in October, a date even later than expected by some. Apple typically releases a new iPhone in the June-July timeframe, but this year is instead holding off until the fall. In recent days, cases claiming to show the new design of Apple‘s fifth-generation iPhone have been appearing in large numbers in China. The cases show curved sides, suggesting the new iPhone will sport a different frame from the current iPhone 4. Rumors of an iPhone with a larger screen are not new with a number of reports over the last year claiming that Apple’s next handset will feature an edge-to-edge display that would allow the iPhone to retain the same size. Here’s the two key points from Wu:
Checks Indicate iPhone Update Could Be Bigger Than Expected. Well, it turns out that we are picking up that this “interim” iPhone refresh in the Fall timeframe could be a bigger upgrade than we expected. We believe this keeps the iPhone fresh and competitive and helps maintain its leadership position. However, we continue to pick up indication that it will not likely incorporate4G LTE due to battery life issues and spotty network coverage. And ironically, if anyone is in a position to fix these weaknesses, it would be AAPL.
Bigger Display. What is different is that in addition to a dual-core processor that we have talked about before, our supply chain sources indicate that it will sport a slightly larger display than the current 3.5-inch retina display that is already industry leading. We are picking up that it will retain a similar form factor and size but with thinner bezel. We believe this makes sense to improve the iPhone experience without making it too bulky as we have seen with models from competitors. We also want to highlight iOS 5 software features which we think are sizeable new upgrades including iCloud, Push Notification Center, iMessage, and Twitter integration.