Craig Hockenberry on screen sizes and production schedules:
These capital expenditures show that Apple is planning ahead. At least 2-3 years, maybe more. You don’t just walk into Foxconn and ask for 50B iPhones. You need to predict the future.
Sure, it would be great to have a larger screen iPhone from what is known about current market conditions. But was a larger screen a sure thing 2-3 years ago? While you were falling in love with the new Retina display on your iPhone 4, I bet you weren’t thinking “Man, this display has got to be bigger!”
It’s also a mistake to assume that the iPhone 6 is going to be big screen only. The 4” form factor will still be a viable next to a 5” iPhone next year. The lower cost iPhone that’s being introduced next month is only the beginning of the diversification of the iPhone line.