July 2, 2012, 3:36 P.M ET — Apps make a phone more powerful, and Apple might compete with Samsung in the software department, not mainly on hardware.
Based off rumors surrounding Apple’s next smartphone, the iPhone 5, it is possible that Apple will focus mainly on bragging about its software and not its hardware to sell more phones.
Rumors say the iPhone 5 will ship with a 4-inch display, a dual-core A5 chip which supports LTE, iOS 6 still with no widgets and a new design. It will also include a new dock connector according to some, while others say the iPhone 5 will include NFC because Apple wants to start its own deals and mobile payment services.
If the iPhone 5 will include a 4-inch screen, then it is nowhere near the Samsung Galaxy S3′s massive 4.8-inch display. Of course, Apple will tell buyers that the 4-incher is still better because you can still use the phone in one hand, but one research firm says size matters. According to a Strategy Analytics report posted last quarter, North American and British smartphone users crave for phones with larger displays, obviously larger than the current screen size of the iPhones which is 3.5-inch.
Based on the numbers posted by the research firm, 4 to 4.5-inch displays are the most popular ideal size. If the iPhone 5 ships with 4-inch, then it will enter the “popular” category, but the report notes that users prefer larger phones because they use it to browse the web while on the go. No brainer, the Galaxy S3 will be a better web browser device than a 4-incher smartphone.
Another rumored feature of the iPhone 5 is “dual-core” CPU that will support LTE which is “technically” slower than the quad-core chipset of the S3. In United States, the Galaxy S3 phones run dual-core by Qualcomm, the new Krait CPU which offers a more responsive UI while maintaining the “friendly” battery life, but in other countries, the Galaxy S3 boasts quad-core Exynos chip. Our own tests show that the Galaxy S3 can run apps better than the iPhone 4S like the “Temple Run: Brave” which features heavy graphics.
So, how can Apple sell more iPhone 5s? Well, we believe that Apple will use its vibrant ecosystem to lure customers. According to reports, the next iOS will include a single iTunes app that will retail all content available on iOS like Music, Apps, Movies, TV Shows and More.
Compared to the Google Play Store and some Samsung native “Hub” stores, Apple’s App Store offers more “quality” applications and its iTunes store features more selection and the latest movies and TV shows available. The only problem of Apple is the bigger number of free apps on Android’s Play Store which makes the Galaxy S3 a more attractive phone especially in developing countries.
Apple might also use its Passbook app to sell more iPhone 5. If the NFC rumor is accurate, then it will give the iPhone 5 the ability to initiate wireless payments. According to CNET’s Lance Whitney, Apple might add NFC-based services on the iPhone 5 “down the road” and not on its launch date.
Another possible event worth mentioning is the changes on prices affecting older iPhones after the launch of the iPhone 5. Analysts say Apple and its partners will cut the prices of the iPhone 4S, iPhone 4 and 3GS in many countries including United States afte the launch of the new iPhone this Fall largely to sell more devices and to gain more customers who are willing to use their credit cards. The switch to the next iPhone, according to some, started this quarter with the rise of pre-paid iPhone 4S in United States.
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