Analyst: Market matures, consumers seek variety in iPhone sizes

CUPERTINO, Calif. (KTVU) - Finals preparations are underway Tuesday night as big crowds are expected at Apple’s Spaceship headquarters as the tech giant rolls what's expected to be a trio of new iPhones. For the first time, Apple will be live streaming the event on Twitter. 

Most of the early buzz is around an iPhone with a 6.5” OLED screen, which is almost as big as the iPad Mini.

Bob O’Donnell is president/CEO of Technalysis Research. 

“What they are going to do this time is introduce several different sizes because what we are starting to see is that as the market has matured, people are looking for some variety,” said O’Donnell. 

Apple is expected to also announce new smartwatches and a new version of its AirPods. All the new iPhones are said to have the same design as the iPhone X, facial recognition technology, a better camera and faster processor. 
Customers are looking forward to the new launch.

“I’m just excited the fact that Apple has not only hit the trillion-dollar mark,” said Terell Sterling of Cupertino. “I’m always looking forward to something being announced. I’m always looking forward to the new products and I think we are at this pinnacle of what Apple is going to do next.”

“I need a bigger screen so I don't have to squint as much when I’m watching Netflix or things like that,” said John Dodini of San Francisco. 

Analysts said the company could test a higher price point than the iPhone X, that's sold at $999.

“There are some people that think Apple should charge even more, investors like Warren Buffet for example, but the reality is that's a tough price point to get above when you are talking about a mainstream product,” said O’Donnell. 

There’s also concerns proposed tariffs imposed on China, where the products are manufactured, could pass down to the customer.

“Reality is they are a really profitable company they could easily absorb that without it being a huge issue,” said O’Donnell. 

At the Apple Store in Palo Alto, customers said they have no problems forking over a $1,000 or more. 

“I asked for a sandwich, they gave me a 10-course meal with this phone,” said Gil Perusa of Saratoga. “It's more than what I need.”

“I think it's a lot, but I keep them for three or four years,” said Paul Clark of Washington D.C.

“The reality is Apple doesn't have to do anything dramatic,” said O’Donnell. “I don't think they are going to. I think what we will see tomorrow are more incremental improvements not dramatic changes.”