Make Up Your Mind: Should Devices Get Bigger or Smaller?

There's been a lot of talk about the growing consumer trend toward phablets, oversized smartphones that approach tablets in dimensions. Analyst continue to call on Apple (NASDAQ: AAPL  ) to address this niche segment of the smartphone market, particularly because Samsung and the rest of the Google (NASDAQ: GOOGL  ) Android army has been able to tap it quite successfully.

At the same time, investors are expecting the next big wave in computing to come in the form of smaller wearable devices. Should devices get bigger or smaller?

We want bigger phones!
Among others, Topeka Capita Markets analyst Brian White believes that Apple absolutely needs a phablet in order to compete, since that form factor is popular in markets like China.

There's certainly a case for Apple to release such a device, but chances are that Apple won't release a larger iPhone until next year. Besides, there's data that suggests that Apple shouldn't be in any rush, since the 3.5-inch iPhone 4S outsold the 4.8-inch Galaxy S3 in 2012. Flurry Analytics also thinks phablets comprise a relatively modest slice of the broader market.

Oh no! Phones are too big!
One of the reasons why people also expect Apple to release an iWatch at some point is because phones are getting too big and becoming cumbersome to carry around. Microsoft (NASDAQ: MSFT  ) is reportedly laying some component groundwork for a possible smart watch.

That's despite the fact that Microsoft used to offer a smart watch, except it failed to gain traction in part because it carried a $10 monthly subscription fee. Microsoft could even be considered a first mover in smart watches.

Google will likely be the first to market with a wearable device when it launches Google Glass later this year. Glass will be a different approach to the market, with the search giant going straight for the jugular.

RBS analyst Wanli Wang was quoted as saying, "We see growing demand for wearable gadgets as the size of the smartphone has become too big to carry around."

So now we have analysts calling for bigger smartphones, which is almost immediately followed by analysts deriding smartphones as being too big. Is there room for both? Or do analysts and consumers need to make up their minds?

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 17, 2013, at 1:27 AM, Melaschasm wrote:

    Consumers are and should demand both larger and smaller phones. Before phones wiped out the MP3 market you had tiny Ipods and huge Ipods with limited access to the internet.

    Personally I would like a watch phone with voice to text and text to voice. I know many other people who would like such a device. I would then want a 4g tablet for internet activity on the go. Until then I am content to compromise with the biggest smartphone screen I can get my hands on.

  • Report this Comment On April 17, 2013, at 8:24 AM, Jjkiam wrote:

    Don't want a bigger phone. I carry my phone in my front jeans pocket and wouldn't be able to do that comfortably with the new S4 or bigger phones. Also I like the one handed usage with my Iphone 5. But then I also have an IPad for larger format usage. The best argument for the bigger phones is about people who can 't afford both. Apple should just make multiple iterations at multiple prices with multiple features like the do in all other major products they produce. This is as true for the low price introductory phone option as the oversized topline phone option. Then we may not need to see 9 month or less refresh cycles and more time could be out into better product improvements over a longer cycle

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2366309, ~/Articles/ArticleHandler.aspx, 9/30/2016 1:02:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
AAPL $112.18 Down -1.77 -1.55%
Apple CAPS Rating: ****
GOOGL $802.64 Down -7.42 -0.92%
Alphabet (A shares… CAPS Rating: *****
MSFT $57.40 Down -0.63 -1.09%
Microsoft CAPS Rating: ****