A new investors note from KGI Securities analyst Ming-Chi Kuo again predicts Apple will drop the aluminum case on their flagship iPhone, with glass the most likely candidate for the replacement, beginning in 2017.
Kuo believes Apple will make the move in order to make its handset stand out from the multitude of “me-too” phones using aluminum cases. The move would mark a return for Apple to using a glass back, as they did for the iPhone 4/4s.
If iPhone 7 still uses an aluminum casing in 2016, it will be the fifth year in a row that iPhone has done so, which means there is no longer a feeling of freshness to appeal to consumers. Also, a lot of Apple’s (US) competitors are also adopting aluminum casings, which means iPhone no longer has a clear edge due to a lack of differentiation. On expectations that iPhone shipments will decline in 2016, we believe Apple will be more strongly motivated to use non-aluminum casings in 2017 in a bid to enhance the competitiveness of iPhone by offering an all-new form-factor design.
Kuo believes Apple will continue to use aluminum on some models, but the percentage will drop from the current 100% down to 40% or less. The remaining aluminum models could include the 6s series, and the recently introduced SE model.
While Kuo note that some investors are concerned the all glass casing would make the larger devices too heavy, he believes that won’t be a problem as some of the weight increase could be offset by Apple’s use of lighter AMOLED screens in 2017.
A number of sources have indicated Apple will release an AMOLED-based phone in 2017/2018. Kuo himself has predicted a model using a 5.8-inch OLED screen, boasting a curved glass casing. Apple currently only uses AMOLED screens for its Apple Watch device.
If Apple does introduce an all new “iPhone 7” in 2016, and then introduces an all-new glass-backed AMOLED-equipped handset in 2017, it would be a departure from its usual “tick-tock” release scheme, where Apple redesigns its flagship device every two years, followed by an “s” upgrade year with only internal enhancements.
