Apple Inc. (NASDAQ:AAPL) may need to do more than just release a low-cost iPhone in order to compete with Android phones. The company may also need a 5 to 5.5-inch phablet in order to stay relevant, according to Topeka Capital analyst Brian White.
White traveled to the Asian Pacific region this week, and among the companies he visited with was China Unicom. He said after discussions with the carrier, he learned how important larger displays are on smartphones now. After meeting with China Unicom, he now believes that Apple Inc. (NASDAQ:AAPL) will need to address the growing need for a larger screen size, especially in markets like China.
The analyst said he first noticed the trend almost a year ago, once again in China but also in Hong Kong at that time, and he said it is gaining momentum. He’s chosen the term “iPhad” for the product he believes Apple Inc. (NASDAQ:AAPL) must develop. The product would have a 5 to 5.5 inch screen, which is larger than the current iPhone screen but a smaller one than the iPad.
White said earlier this week that he expects when the iPhone 5S comes out this summer, it will be available in two or three different sizes, possibly with one having a larger size screen. However, he also said that he isn’t aware that Apple Inc. (NASDAQ:AAPL) is working on a phablet-sized device.
Once again today he reiterated his Buy rating and $888 per share price target on Apple Inc. (NASDAQ:AAPL) shares. At the moment of this writing, shares of Apple Inc. (NASDAQ:AAPL) were down 0.26 percent from their price at opening bell.