Apple Inc.: Why Would Apple Overhaul the iPhone AGAIN?

Advertisement

On Sunday, Mac news sites began publishing a report by KGI Securities analyst Ming-Chi Kuo suggesting that Apple Inc. (AAPL) is looking to switch to an all-glass iPhone in 2017.

New iPhone made of glass
Source: Brad Moon

If the report holds up, this would be a massive move, considering Apple switched to an aluminum case design after the iPhone 4s. When it released the iPhone 5 in 2012, the aluminum design was one of the headline features of the new iPhone.

Since then, other smartphone manufacturers have been playing catch-up.

Numerous companies ditched their plastic cases in an effort to match the premium aluminum and glass look of the Apple iPhone. Even Samsung (SSNLF) adopted the metal look with the Galaxy S6, abandoning the Galaxy smartphones’ signature polycarbonate shell and losing key features like its removable battery in the process.

Apple iPhone: From Glass and Back Again

After building up aluminum as the ideal premium material for smartphones, why would Apple abandon the metal for a new iPhone? And why would it go back to glass, of all materials? After all, the company had to endure a period of negative publicity when the all-glass iPhone 4 was released and turned out to be much more prone to breaking than previous models.

Well, here are a few reasons I can think of:

  1. With iPhone sales sliding, Apple needs some way to convince current iPhone owners to upgrade. New features don’t always do that, but an all-“new” look might.
  2. Everyone else is doing aluminum now, so the latest iPhones don’t visually stand out from the pack.
  3. Plastic still looks low-rent, so that leaves glass if Apple wants to change the look of the iPhone while keeping its flagship visual appeal.

The first point in particular is a big one as Apple tries to kickstart iPhone upgrade cycles.

The problem with iterative design changes — the iPhone 6 to 6s and likely the iPhone 7 as well — is that it’s not easy to tell that someone is carrying the latest new iPhone at a glance. Apple counts on some of its customers as being the type who like to be seen with the latest and greatest devices, but this demographic hasn’t necessarily felt the need to upgrade in several years.

Switching to an all-glass form factor would mean there is no mistaking a new iPhone for last year’s model, or any Android smartphone for that matter. Apple would be counting on this visible change to drive another round of iPhone upgrades.

Lets not forget that using visual design changes to sell new products has been an Apple favorite for decades: new colors of iMacs, iPods, iPhones and iPads have often been used to try to spark sales.

Of course going to an all-glass enclosure for a new iPhone brings some risks. It sounds like an anticipated moved to OLED displays in 2017 will offset any weight gains, but the fact remains that glass is more fragile than metal.

Expect iPhone case makers to do a booming business if that new iPhone in 2017 does turn out to be all-glass.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

More From InvestorPlace

Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015.


Article printed from InvestorPlace Media, https://investorplace.com/2016/04/apple-aapl-new-iphone/.

©2024 InvestorPlace Media, LLC