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Apple Inc. (AAPL) is Breaking With a Popular iPhone Tradition

Apple Inc (AAPL) iPhone 7

Apple Inc. – like always – would release a new iPhone this fall, but this new phone will be similar to the current iPhones already in the market. With this, the iPhone maker may do away with the trend of 2-year upgrade cycle under which it releases a complete redesign of the handset every two years. In years between, it usually release a so-called ‘S’ model with subtle improvements, claims a Wall Street Journal report.

Apple Inc. (NASDAQ:AAPL) iphone

Apple iPhone 7 – an incremental update?

Unlike the expectations of a completely redesigned iPhone 7, the next phone this Fall will be more of an incremental update, and thus, will be very similar to the current iPhone 6S. The rumors state that Apple will make bigger changes to the device it is planning to launch in 2017.

The WSJ report states that the 2017 device could feature an edge-to-edge screen and fingerprint sensor inbuilt in the screen itself. However, the iPhone to be released in September this year, will not have any major changes from the iPhone 6S. The tech giant will release two models – a 5.5-inch version and a 4.7-inch screen, the report says.

The biggest change will be no headphone jack, suggesting the users will either have to get wireless earbuds or new headphones that use Apple’s charger.  Quoting a top Apple analyst, the WSJ said the iPhone will be thinner by 1mm.

What about the name?

A question still remains: What will Apple Inc. name its new iPhone? If it’s another incremental upgrade, buyers could be upset if Apple decides to call it the “iPhone 7.” Also, it is being rumored that the iPhone to be released next year will be called a ‘10th anniversary’ edition.

It won’t be wrong to assume that Apple could ditch the numbers as well, since it is ditching its ‘ticktock’ system of upgrades. It is possible that instead of the iPhone 7 or iPhone 7 Plus, the device could simply be called the iPhone and iPhone Pro.

Whether the shift Apple is going to make this year is a temporary or a permanent departure from its usual pattern is not clear, but either way, it comes at a time, when it generates nearly two-thirds of its revenue from iPhone – its most important product. For the first time in Apple’s history, the sales of iPhone have declined as demand slows, and the markets with high demand such as China have cooled.

Apple Inc. introduced large screens iPhones in 2014, and this helped a 37% rise in sales in the fiscal year ending September 2015. And prior to this, an increase of 13% was seen in the iPhone sales, when Apple introduced the iPhone 5S with a design very much similar to the iPhone 5.

In pre-market trading today, Apple shares were up slightly.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.