That’s obvious. But let’s break down the marketing.
Apple Users in the Wild
I know plenty of iPhone users. I don’t know of any that are unhappy with the current screen size. It’s a small minority at best.
Have you ever seen a group of people talk about their phones? When iPhone users talk to other iPhone users about the amazingness of the iPhone, they talk about how much they love the iPhone. But then they ask one another which iPhone they have. This conversation starts with the person with the newest iPhone.
A good percentage of iPhone users put their phone in some protective case. This obscures the shape and thickness of an iPhone, but it doesn’t hide key identifying features. For example, the iPhone 3G or 3Gs does not have a front-facing camera, so people who see it can immediately tell it’s not an iPhone 4 or 4s.
The iPhone 5 is 7.6mm thick. The iPhone 4 is 9.6mm thick. All else being equal, the thickness (obscured by a case) is impossible to see.
Apple understands how iWant works. Having the newest iPhone is a status symbol. Apple wants the differences between each generation to be visibly obvious. The only way for the iPhone 5 to be visibly different from the iPhone 4 or 4s, all else being equal, is a bigger screen size and bigger form factor. The iPhone’s front-facing camera made it visibly different from the iPhone 3G and 3GS.
Prior to the 3G and 3GS, thickness reductions were large enough to be distinguishing differences. The OtterBox wasn’t yet popular, so thickness was easy to see.
And there you have it: Apple had to do something to the front of the phone to make it look different to continue the cycle of iWant. Giving the iPhone 5 a bigger screen was an easy way to do it. I can guarantee that this generation will sell many more units because of the bigger screen. Not because Apple users want a bigger screen, but because no one wants to be that guy with the outdated iPhone.
Furthermore, I’m willing to wager that the next iPhone generation has another distinguishing difference on the front face of the phone. The newest iPhone is the most valuable when other people can tell that you have the newest one, hence why the 4S wasn’t nearly the rockstar that it could have been if it were visibly different from the 4.
Links this Week
- A WSJ piece calls for an end to unlimited bank insurance for corporate bank accounts. I like the idea.
- Dominique says PK and I have great roundups. To influence his opinion, I have to include his post about colleges that you can attend for free. (It really is a great list of free schools.)
- Shunning PK, I’ll include the article of his co-writer Cameron, who makes a great case for leverage in a post about why he’s worthless.
- Nelson shares an interesting story about how he almost went to work selling overpriced financial products.
- IAm1Percent wants to know if he should use a financial planner. Personally, I think anyone with his level of income and assets should. (Unless they’re rich an CPAs!) $500 for a visit to a fee-only practice might save him tens of thousands paid to the IRS. Share your opinion.
- American Debt Project writes about Sears falling out of the S&P 500. I previously wrote about Sears’ terrible financial condition in a post about when assets are liabilities.
- Darwin writes about the changing FICA tax limit in 2013. See why your paychecks might shrink.
- 101 Centavos writes about gun stocks. I’ve been watching this too – Ruger and Smith & Wesson are rocking the street. Should you invest now?
- Untemplater rocks a post titled “Can introverts succeed as entrepreneurs and leaders?” Hmm, I sure hope so! (BTW, that TEDTalks video she links is great. Actually, most TED Talks are – it’s stuff white people like.)
Stuff I wrote elsewhere
Why Leveraged ETFs Don’t Match Market Performance at The College Investor
What are Business Development Companies at Investor Junkie.
A post on Brokered CDs at Darwin’s Money.
A review of the SuperDividend ETF at ETFBase. (8-9% yields!)
How to pick a stock at 20sFinances as part of a short series on investing.