Apple to Compete with Samsung Galaxy Note 3?; California-Based Company Looks at Bigger iPhones, sources say

Sources say Apple is looking to compete with the Samsung Galaxy Note “phablets,” according to Reuters.

If true, this may show the sense of urgency Apple has to get back on top of the smartphone market. For the past few years the Cupertino, California-based company has produced only one type of smartphone per year—unlike its competitor Samsung.

For a while, this worked. Apple was at the peak of the smartphone industry and the iPhone was the best selling handset in the country.

However, this year Samsung took the lead in the smartphone market and Apple reported its slowest growth since 2010. Samsung has done it by using different devices. In addition to its Galaxy S phones, which were put up against the iPhone with the launch of the Galaxy S3, Samsung has also produced its phablets—the Samsung Galaxy Note and Samsung Galaxy Note 2. In addition, the company provided phones that range from low-cost to high-end.

The sources say Apple is may create a 4.7-5.7 inch screen iPhone in addition to the phones on the supply chain in Asia. They added that suppliers were shown the plans for the bigger iPhones but it’s still up in the air as to whether or not Apple is going to make an attempt at a larger device.

In 2013 Apple is expected to launch the iPhone 5s and a cheaper iPhone that will be available in five or six colors.

Many analysts and consumers have said the company has deteriorated a bit since the passing of co-founder Steve Jobs.

Current CEO Tim Cook was asked at the AllTThingsD industry conference why the company hasn’t produced iPhones with various sizes. He replied, “We haven’t so far. That doesn’t shut off the future.”

Apple has done well with its various iPods and iPads. Cook said the different iPods pertain to a range of people.

"On the phone, that's the question. Are we now at a point to serve enough people that we need to do that?" he asked.

Cook added a bigger screen could also mean less battery life, along with effects on brightness and resolution.

Preliminary production for the 5s and cheaper iPhone is supposed to begin in July, accelerate in August and launch in September, said two sources.

"Trial production was originally planned to start in June, but the mixing of colours is taking longer than expected as Apple has very high and idealistic standards," said one source from Asia. The source also said 20 million plastic iPhones could ship in the fourth quarter.

Japan-based Sharp Corp, Japan Display and South Korea-based LG Display are expected to provide the panels for the aluminum iPhone 5S and the plastic-made iPhone. Hon Hai Precision Industry will put together the more expensive phone. Petragon will assemble the low-end phone.

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