Apple launches new small-screen iPhone against the trend: Is it really good to be so willful?

On the morning of March 21, Beijing time, according to the Wall Street Journal, people familiar with the matter revealed that Apple is expected to launch a new small-screen mobile phone at its headquarters in Cupertino, California on Monday. This successor to the iPhone 5s will upgrade the processor, improve the camera effect, and be able to use Apple Pay payment services.

Apple could also use the opportunity to resolve an escalating legal conflict with the U.S. Justice Department, which wants it to unlock the iPhone of a San Bernardino shooting suspect. Apple lawyers and the Justice Department will go to court on Tuesday to determine the boundaries of smartphone privacy and security.

The company is also expected to unveil a 9.7-inch iPad at the event, which could feature a processor upgrade similar to the 12.9-inch iPad Pro released last November.

The upgrade to the smaller iPhone comes as growth slows for the flagship device, which accounts for about two-thirds of Apple’s revenue. iPhone sales rose 0.4% in the first quarter ended in December, the slowest pace since the device was introduced in 2007. Analysts expect sales to fall for the first time this quarter.

Apple has repeatedly set sales and profit records with its large-screen smartphones in recent years, fully catering to consumers' needs for watching videos, playing games and surfing the Internet on large-screen phones. As a result, the iPhone sold has three sizes: 5.5-inch iPhone 6s Plus and iPhone 6 Plus, 4.7-inch iPhone 6s and iPhone 6, and 4-inch iPhone 5s. Apple released the new iPhone 6s in September 2015, but has not upgraded the 4-inch iPhone since 2013.

Now, Apple wants to cater to the needs of users who like small-screen phones and provide them with the latest services and features.

Yashodhan Talwar, a 29-year-old software engineer in India, is one such user. After his 5-inch Nexus 5 developed battery problems, he borrowed his sister's older iPhone 5. "I can't go back," he said.

Talvo said that for him, the mobile phone is more like a daily necessity than an entertainment device, so a 4-inch screen is enough to check maps, send messages or listen to music. Because it hurts his hands too much, he no longer uses a large-screen mobile phone.

Talvo said that if Apple launches a 4-inch high-end smartphone, he will give up Android phones. "This size is exactly what I use," he said. "It's very comfortable to use."

Gene Munster, an analyst at US investment bank Piper Jaffray, conducted a survey of 1,077 respondents in December last year and found that about 20% of US consumers prefer 4-inch phones.

RBC Capital Markets analyst Amit Daryanani estimates that Apple could sell 10 million to 15 million of the new 4-inch iPhones per year.

That number pales in comparison to the 231 million iPhones Apple sold in the fiscal year ended September 2015. Still, the phone will help boost sales in the summer, when Apple's earnings are often hit by the upcoming release of a new iPhone.

It's unclear how much Apple will price the new phones. The iPhone 5s is currently Apple's cheapest model, starting at $450 without a phone. By comparison, the iPhone 6s starts at $650 and the iPhone 6s Plus starts at $750. The old iPhone 6 started at $550 and the iPhone 6 Plus started at $650.

Neil Cybart, owner of Above Avalon, a website that analyzes Apple, said the iPhone installed base is large enough, estimated at 640 million, to sustain a variety of screen sizes.

"As the iPhone matures, this process is needed to improve the product line," said Sebat. "Perhaps a considerable number of users want to buy an upgraded 4-inch phone."

Bigger iPhones have helped Apple attract new customers and entice existing users to upgrade, but Apple Chief Executive Officer Tim Cook told analysts that 60 percent of iPhones purchased 18 months ago, before Apple started selling larger phones, have not been upgraded.

This shows that small-screen mobile phones do have opportunities.

It is increasingly important for Apple to keep users loyal to the iPhone, which has become an important gateway to various applications and services such as Apple Pay.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.