Wednesday, July 27, 2016

Apple iPhone 7 may be launched as the iPhone 6SE: Here’s why it makes sense


In the past few months, I've been covering a string of rumors around Apple's upcoming devices allegedly the iPhone 7 and iPhone 7 Plus with minimal changes, and then we've also been hearing about the big overhaul coming next year with the iPhone 8. Now, the rumor mill has thrown in one more device to confuse us further — iPhone 6SE.

The new rumors points out that the company will be launching iPhone 6SE in September. Interestingly, the report claims the company will call the new device iPhone 6SE instead of iPhone 7. Apple is known to be pretty tight lipped about news related to its upcoming products, but German website Apfelpage.de, citing supply chain sources, said packages are already being produced with the iPhone 6SE branding.

Apple's product cycle


This makes sense, considering the product cycle Apple is known to follow. Last year was the 'S' year which usually brings some internal 'speed' changes. So, this year, ideally, the alleged iPhone 7 and iPhone 7 Plus should come with a major design overhaul. But rumors all along have been indicating that the devices this year will come with minimal changes, such as waterproofing capability and the removal of the audio jack. So, joining the dots, an iPhone 6SE and probably 6SE Plus would make more sense. And, this means the big overhaul will come with the iPhone 8 next year, and the company will be able to follow the nomenclature it has been using, so far. Also, this year the devices are expected to simply be an upgrade to the 6s series, and naming the smallest variant the '6SE' makes sense.


iPhone turns 10 next year


The big changes coming in next year also make sense since it will be a grand year for a device that turns 10. Now, that explains a lot about the big changes planned for next year. Jony Ive has apparently planned a major overhaul for next year, celebrating 10 years of iPhone.

It is also about 'big' technology in the pipeline


Besides celebrating the iPhone's 10th anniversary, the technology that Apple plans to implement is also believed to be very complex. This report claims that Jony Ive has been hoping for an iPhone that looks like a single sheet of glass and the ideas for 2017’s iPhones seem to be something on those lines.

Apple is smarter than you think


Why would Apple not put its best foot forward when the sales are sliding off a slippery slope and wait until next year? Well, because it could be a well-thought move. Apple may be looking to create a year long lull and analysts are saying that a "powder keg is forming in the installed base," a theory by Timothy Arcuri and his team of analysts at Cowen & Co.


Apple iPhone users who are expected to upgrade to iPhone 7 or probably the 6SE are about 33 percent (a consistent figure for the past six quarters), and by the next five quarters this number will go up by 43 percent. The 43 percent upgrades will bring in more sales next year than the 33 percent this year. He calls it a super-cycle for the year 2017. The iPhone to be launched this year could be described as a bridge to get to the super cycle.

He explains, "The iPhone 7 (or the alleged iPhone 6SE) won’t be a big design innovation because it realises the ageing dynamics of the base and saw this coming years ago. Choosing to save the true cycle of innovation for when the base would be incredibly ripe is a smart move. Ergo, we conclude that either, 1. the iPhone 7 sells better than expected due to this ageing base, or 2., the iPhone in 2017 will be a super-cycle, especially if we are right about a new innovative OLED-enabled form factor."

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