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iPhones to Get New Screens, but Shipments May Still Struggle

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Jun. 19 2019, Updated 12:56 p.m. ET

Apple shifting to new screens

Apple’s (AAPL) iPhone shipments have been hit badly in the last two quarters due to various factors, from sky-high prices putting off consumers to longer upgrade cycles.

According to Apple analyst Ming-Chi Kuo, Apple’s entry-level iPhone is set to launch in 2020 with an OLED (organic light-emitting diode) screen, the lack of which was the iPhone XR’s main drawback. OLED screens have superior contrast and provide deeper blacks.

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Apple’s iPhone shipments may continue to struggle

The introduction of a 5.4-inch OLED screen on entry-level iPhones could narrow the gap with high-end phones. However, Kuo has indicated that the 5.4-inch model will not have the 5G compatibility offered by its siblings with 6.7-inch and 6.1-inch screens. Also, having an OLED screen may not guarantee success, especially if it means entry-level iPhones will be pricier.

Meanwhile, experts are divided on whether 5G could solve smartphones’ sluggish sales. Even those who think 5G will help sales believe its benefits will be mild at best. Apple is ramping up its services to negate its shrinking iPhone sales.

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