Why Apple is Creating 2 Larger iPhones and the iWatch Connection

Src: Todd Ham

Apple has quietly pre-announced that they will be creating 2 larger iPhones.  The need to create the phones is driven by a US consumer focused on larger.  Strategically, Apple is aligning the pre-release of the information about the larger phones to create a halo effect for the iWatch.   The  wearable is rumored to be a biometric feedback wearable that has a screen and message-based and visual-queue extension of a core Apple device.

An Apple device can be an iPad, iTouch, iPhone, or Shuffle/Nano.  In other words, the core Apple device becomes a new HUB and the iWatch becomes a lightweight device for human interfacing.  For a deeper and detailed experience, you go back to the core device.

A BlueTooth LTE Headset completes the ecosystem.  Given LTE can work about 30+ ft and is a low-power technology that will work with the iWatch, the time is right for a LARGER Apple device - Expect the sizes to focus on the iPad Mini which is just about right.  Too small of a screen and you can't type.

Given the iWatch can be on WiFi to receive data, this opens up a new option to carry around an iWatch to receive calls over the Internet and to leave a traditional Smartphone at home.  The de-coupling of the iPhone from the iWatch will be a feature but the iTunes model of coupling the two products will be part of the 1st Gen of the product.  The halo effect is preserved.

There is a subtle other target segment that Apple is focused on and where Facebook is growing and that is the senior group of 55+.  The need to have a larger font/screen is driving the company to embrace the AARP-crowd.

In this new model, Apple has achieved two goals: 1) Met the needs of the consumer and 2) Created a new ecosystem enablement with a halo effect latch for the iWatch.