Topeka Capital Markets analyst Brian White believes Apple plans to broaden it’s device portfolio with the release of an iPhone 5s.
“We believe tax-related selling was largely to blame for the downward bias in the stock price as we exited 2012 and this created a negative news cycle around Apple that we believe will be broken as we enter 2013. We believe there is still plenty to look forward to at Apple, including the potential for greater choices (i.e., colors, sizes) around the next iPhone in 2013, combined with accelerating momentum with the iPad mini and continued strength with the iPad franchise at large,” said White.
Furthermore, White notes that checks with Apple’s suppliers marks a great departure from past iPhone models.
“Our checks indicate that the next iPhone will have more choices for customers,” White wrote. “This entails an expansion in both the color patterns and screen sizes with the next iPhone (i.e., likely called the iPhone 5S) that we currently believe will be launched in May/June with certain supply production starting in March/April.”
Could there be different colors and screen sizes for the iPhone? White believes there will be five colors: pink, yellow, blue, white & silver and black & slate. He also believes there to be two screen choices.
“Our checks are also indicating that the next iPhone will offer customers more choice in terms of screen size,” White reported. “Although Apple offers a 4-inch screen on the iPhone 5 and a 3.5-inch screen on the iPhone 4S and iPhone 4, the Company has never offered multiple screen sizes for a single model. We believe this is about to change with the next iPhone offering different screen sizes that we believe will allow Apple to better bifurcate the market and expand its reach.”