The Next Thing Apple Inc. (AAPL) Will Kill

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Two rumors about upcoming Apple Inc. (NASDAQ:AAPL) product releases show the next target on AAPL’s hit list: the display bezel. Analysts are calling for an all-new 10.9-inch iPad in 2017, followed by super-sized iPhone 8 models.

The Next Thing Apple Inc. (AAPL) Will Kill

Source: Apple

According to a report from Barclays, all three new Apple devices will lose the display bezel, sporting edge-to-edge displays.

The bezel is the frame that surrounds the display on a laptop or mobile device. No-one particularly likes looking at a bezel, but for years they have been a necessary design element. The bezel provides structural strength, and on smartphones and tablets it provides a place for manufacturers to incorporate physical buttons.

Why the Bezel Gets the Ax

So why would Apple want to get rid of the bezel on the iPhone 8 and the new iPad model it’s expected to introduce next year?

Visual appeal is high on the list, but there is a more practical purpose as well. Get rid of the bezel, and you can fit a larger display in the same size form factor.

In the case of the new MacBook Pro, Apple chose to keep the same 15.4-inch and 13.3-inch Retina displays as previous models. However, the smaller bezel means the overall physical size of the notebooks — their footprint — is smaller. This is a similar tactic to that used by Dell. The “Infinity Display” in its XPS 13 allows for a laptop that’s close in size to an 11-inch notebook.

What’s Being Said About the iPhone 8 and New iPad Model

MacRumors published details of a report released by Barclays research analysts, who cited sources within AAPL’s Asian supply chain as their sources.

According to the analysts, two new iPhone models will feature bezel-free displays. The iPhone 8 will have edge-to-edge, curved glass displays, free of bezels. The curved edge display is a feature pioneered by rival Samsung (OTCMKTS:SSNLF) in its Galaxy Edge phones. Getting rid of bezels altogether on the iPhone 8 will require incorporating the Home button within the display.

Apple took the first step toward this with the iPhone 7, which features a solid-state home button, replacing the traditional physical button. So AAPL should have the technical know-how to manage this.

We’ve heard talk of curved displays on the upcoming iPhone before. What’s new is the prediction that the bezel-free design will let Apple bump up the size of the new iPhone displays, while keeping them the same physical size as the iPhone 7. The iPhone 8 would move from 4.7 inches to 5 inches, while the iPhone 8 Plus would go to 5.8 inches from 5.5 inches.

This would be a big win. Consumers like bigger displays — they’re easier to read, while games and video look better. But there’s a limit to how big a smartphone can be before pocket-ability and usability become issues.

The prediction that AAPL would release three new iPad models in 2017 is also not new. However, the Barclays analysts have added a wrinkle by claiming the new 10.9-inch iPad Pro will feature a bezel-free design with an edge-to-edge display. Doing so will let Apple sell a mid-sized iPad that’s the same physical size as the iPad Air 2 and 9.7-inch iPad Pro.

A new iPad Pro with a larger display that’s fashionably bezel-free would appeal to consumers looking for a fresh new design, while offering another option for Apple’s increasingly important enterprise buyers.

Bottom Line for AAPL

2017 hasn’t been the most stellar year for Apple product releases. Many long-time fans have complained about the company’s choice to eliminate “outdated” ports across its model lines. Controversy over the lack of a headphone jack on the iPhone 7 and the move to all USB-C ports on the new MacBook Pro in many ways overshadowed their respective launches.

However, if 2017 does indeed turn out to be the year Apple declares war on the bezel, expect to hear cheers instead of boos.

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

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/2016/11/next-thing-apple-inc-aapl-kill-bezel/.

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