According to KGI Securities analyst Ming-Chi Kuo, Apple could be planning to launch a smaller version of the iPhone alongside the iPhone 7. The phone would resemble an upgraded iPhone 5S, but with the same processor as the one that powers the iPhone 6S. The feature that would not be included in this iPhone is 3D touch, which is currently one of the main new features in the 6S and 6S plus. 3D touch lets you interact with your phone's display on multidimensional levels thanks to its ability to sense different amounts of pressure. Taking out this feature would help differentiate the lineup options for customers that are looking for something more on a budget and with a 4-inch display.
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This decision could mirror the previous "lower end" iPhone 5c. which did not meet the company's expectations in terms of sales. This could be a smart move, especially considering Apple's expansion in China and other regions where the market is strongly made of middle class consumers, which would want to get a product that performs well, while not necessarily spending the money required for purchasing the top tier. According to Business Insider, Kuo is an incredibly trustworthy analyst who predicted correctly the launch of a 4.7 and 5.5 inch iPhone, the 12-inch MacBook, the two sizes of the Apple Watch and the hardware contained the iPhone 6S.
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