The iPhone line has been the cash cow for Apple. So, investors were disappointed when Apple reported the first ever decline in the iPhone sales. Wall Street has largely come to a consensus that the next device, likely to be called iPhone 7, will look a lot like the last year’s iPhone 6S. Deutsche Bank said Thursday in a research note to investors that Apple is switching to a 3-year major upgrade cycle.
New iPhone will have some key changes
Previously, the tech giant would come out with a new design every other year. Deutsche Bank said supply chain checks suggest the iPhone 7 will retain the design elements of the iPhone 6S, but there will be some key changes besides the removal of the headphone jack. Citing supply chain sources, Nikkei reported in May that the switch to a 3-year major upgrade cycle was because there was “little room left for major enhancements” in smartphones.
Launching a new iPhone without a design overhaul could further affect Apple’s sales. A survey conducted by Quartz earlier this month revealed that only 10% of the current US iPhone owners were looking to upgrade this year. A longer upgrade cycle means consumers would buy fewer phones. However, the move could trigger a massive upgrade when Apple launches the iPhone 8 in 2017 with a big design overhaul.
iPhone 7 to have professional class waterproofing
Deutsche Bank analysts expect the 5.5-inch iPhone 7 Plus to have a dual-camera setup and 3GB RAM. The 4.7-inch model will also get an improved camera with optical image stabilization, though the megapixel count will remain the same 12MP in both phones. The iPhone 7 was long rumored to be dustproof and waterproof. Deutsche Bank analysts have learned that the new iPhone will boast of “professional class water-proofing.”
The analysts added that there will be a new color so the new iPhones look different from the existing ones. The headphone will plug in through the Lightning charging port. Recent leaks suggest that the 5.5-inch model will also have an iPad-like Smart Connector.
