Video is more watchable on bigger displays, and ideas like newspaper subscription services also become significantly more appealing when customers have larger screens.
And the move does come at a time when Services are more important to Apple than ever before, as upgrade cycles lengthen.
Apple earns an estimated $30 per device annually from app sales, music subscriptions and other offerings, according to Morgan Stanley , which expects services to account for about 60% of Apple’s revenue growth over the next five years. By contrast, the iPhone accounted for 86% of sales growth over the prior five years, Morgan Stanley estimates.
I can definitely see that video and magazine/news apps are likely to be more appealing on a larger screen which in turn will drive interest and income for Apple’s upcoming video service and after Apple’s magazine acquisition.
Having additional screen sizes keeps the market competitive especially with competitors vast array of choice and sadly it surely looks like the unconfirmed end for the iPad mini which had a screen size of 7.9″ – the gap between the largest screen sized iPhone (6.8”) to the smallest screen sized iPad (9.7”) seems to warrant too small a gap to justify continuing development and manufacturing of the iPad mini.