Tech reviewers have slighted the SIV on the grounds that it isn’t a major upgrade compared to Samsung’s prior handset, the SIII. If the SIV is hardly better than the SIII, one would expect sluggish sales, given that the smartphone market might be nearing saturation.
Likewise, if Apple’s next iPhone is simply an iPhone 5S, investors shouldn’t expect record demand. A larger iPhone might have prompted a massive upgrade cycle, wherein existing iPhone users — jealous of their friends’ larger Androids — would have been eager to pay up.
Could a thumb scanner help?
Although the iPhone 4S had the same body as the iPhone 4, it did come with one major software update — Apple’s virtual personal assistant, Siri.
This time, Apple might be going for something similar. After purchasing AuthenTec last year, there has been much speculation that Apple would implement a thumb scanner into the home button on its next iPhone.
Could the iPhone 5S come with a thumb scanner? It’s what Topeka Capital’s Brian White believes.
But would that be enough to sell the handset? Siri was a great marketing ploy — Apple was able to create TV ads centered around the application. A thumb scanner seems like a harder sell.
The iPhone 5S could replace your wallet
The true potential of such an innovation would be if Apple were to tie it to a system of mobile payments. If the iPhone 5S was unique in being the first iPhone to fully replaced your wallet, that might sell well.
Both Morgan Stanley analyst Katy Huberty and Piper Jaffray analyst Gene Munster have said they believe mobile payments are in Apple’s future.
However, Google Inc (NASDAQ:GOOG) has been trying to pull off a similar feat for years. Despite the fact that most Android-phone makers have equipped their phones with NFC technology, Google’s application — Google Wallet — has thus far failed to gain much traction since its release nearly two years ago.
In fact, Businessweek labeled it a “money pit,” noting that Google had invested hundreds of millions of dollars and has thus far seen little return.
The next iPhone
At this point, only Apple knows the dimensions of its next iPhone. But if the images MacRumors posted are legitimate, shareholders should be concerned. Continuing to cling to a smaller form factor could lead to sluggish sales.
Giving the next phone a thumb scanner, and tying it to a system of mobile payments could help, but as Google’s struggles demonstrate, that’s no guarantee of success.
The article If This Is the Next iPhone, Apple Shareholders Should be Worried originally appeared on Fool.com.
Salvatore “Sam” Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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