Apple wins patent for wildest iPhone design you’ll ever see

Meet the iPhone of the (possible) future. Patently Apple notices that Apple has won a patent for a radical new iPhone design that imagines a wraparound bezel-free display that also eliminates the traditional physical home button that has been a staple of the iPhone ever since its launch in 2007. The casing for the new iPhone design is also a major departure from the traditional iPhone as it looks much more like a fourth-generation iPod nano than any other smartphone Apple has ever released.

In its patent filing, Apple envisions that the new iPhone’s curved display will be made from flexible material that can present “an illusion of depth perception” capable of “mimicking a 3D experience.” Apple also says that users would be able to control the volume on the phone “by holding a finger over the volume indicator” and “expanding the volume control over the entire left side of the device,” thus eliminating any need for a volume button. Patently Apple adds that “Apple’s patent also notes that the advanced iPhone design may contain several cameras and use facial recognition.”

While we’re unlikely to see this iPhone design used in the iPhone 6 or really any other iPhone over the next couple years, it does seem like something Apple might release in the future once flexible display technology matures. This patent filing first cropped up a year ago so it’s definitely something that Apple has had on its mind for a long time now.

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Apple's Best Fortune Tellers See Bigger iPhones (And Much More) For 2014

With last week’s iPhone launch behind it, and next week’s iPad announcement ahead, 2013 product introductions are basically a wrap for Apple. While we still await the final details of the newest iPads — a slimmer full-size model, a Retina screen on the Mini — and perhaps updated Macbook Pros, the company is already onto next year’s products. And if the pros at DisplaySearch and KGI Securities are to believed, those include a larger screen iPhone (at last?) and a long-awaited update to the Macbook Air, with a Retina screen of its own. But there is apparently more on tap, including possibly a cheaper desktop iMac, a larger 13-inch iPad, Apple’s long-awaited televisions, and the much-discussed smartwatch. These could be the catalysts to reignite slowed growth at the company.
Many are quick to dismiss the rumor mill — and with good reason. Anyone with a website and an idea can post, “Apple to release really cool gadget next year with features I want.” But some sources are better than others. David Hsieh of DisplaySearch is on such source and KGI Securities anaylst Ming-Chi Kuo is another. One of their secrets is that Apple can’t introduce a product at all without acquiring literally millions of parts and getting them into their supply chain to make their product launches possible. I’ve discussed this before, but it’s worth reiterating: Just because the Nexus 7 has a Retina-quality display (and it’s a nice one, I can say from experience) doesn’t mean the iPad Mini could have had one 6 months ago. For all Google/Asus’ success with their tablet, Apple sells millions more.
To do a Retina Mini, Apple needs to have acquired 10 million screens before shipping a single unit and to be certain that it could obtain 10 million more each subsequent quarter. The way it does that is through a series of supplier agreements with display makers that are negotiated far in advance and often lead to dedicated production of Apple specified screens for its products. Hsieh, who has been in the business for a long time, talks to everyone, tries to figure out who is making what for Apple, and then attempts to discern how it relates to future products. From that, he’s produced a “best guess” a the 2014 product line.

iPad mini 2 iPad 5

Tech enthusiasts have expected for many months that Apple (NASDAQ: AAPL ) would announce new versions of its full-sized iPad and iPad Mini sometime in October. The rumor mill heated up this week, as AllThingsD -- usually a reliable source -- reported that Apple will unveil the new iPads on Oct. 22.
However, while most observers agree that the fifth-generation iPad will feature Apple's new A7 processor, a thinner bezel, and a design closer to the iPad Mini, there is much less certainty about what to expect in the iPad Mini 2. The AllThingsD story claims that the new iPad Mini will have a Retina display. On the other hand, several other recent reports have stated that Apple doesn't have enough supply of 7.9-inch Retina displays to meet the likely holiday quarter demand.
The good news is that I don't see much danger to Apple even if the new iPad Mini is delayed or in short supply this fall. The iPad Mini already has subpar margins by Apple's standards, and a version with a Retina display will be even costlier to produce. The continued rollout of Apple's new iPhones and the updated full-size iPad are far more important for driving higher profits at Apple this quarter.
Mixed supply-chain reports
The emerging consensus is that Apple will introduce an iPad Mini with a Retina display on Oct. 22. However, a Reuters report earlier this month stated that Apple wouldn't be able to build a Retina iPad Mini this quarter because of supply constraints for the screens. This report was corroborated by several other supply-chain sources.
It's hard to know whom to believe. Given the number of reports emerging this week about an imminent iPad Mini launch, the most likely scenario is that Apple will release a Retina iPad Mini, but it will be in short supply during the holiday season. That would essentially be a repeat of what happened last year.
iPad Mini blues
The iPad Mini came with great fanfare last year. Its smaller size and $329 price point were expected to help Apple win market share back from Google (NASDAQ: GOOG ) , Amazon.com, Samsung, and other Android vendors.
In its first few months on the market, the iPad Mini was a big hit. It helped drive an impressive 48% increase in iPad unit shipments last fall, despite significant supply constraints, followed by a 65% increase in the March quarter. However, it went stale very quickly.
In fact, this spring, Apple experienced its first year-over-year decline in iPad shipments. (This was also due in part to launch timing.) According to IDC calculations, Apple's global tablet market share plummeted from more than 60% in Q2 2012 to 32.5% in Q2 2013, while Android's market share soared from 38% to 62.6%. The launch of Google's new Nexus 7 tablet this summer means that Apple probably lost even more market share in Q3.
However, these figures don't fully capture the disappointment the iPad Mini caused. Apple executives have repeatedly stated that the iPad Mini carries a gross margin significantly below the corporate average. It also carries a much lower average selling price than the full-sized iPad. When you factor in cannibalization of the more profitable full-sized iPad, it seems quite likely that the iPad Mini has been a primary cause of Apple's profit decline this year.
The good news for Apple investors is that because the iPad Mini isn't a significant contributor to the company's profit, it's not a big deal if the new iPad Mini is delayed or available only in limited quantities. A lot more is riding on the expected fifth-generation iPad.