iPhone 7 finishes ConceptsiPhone 002

The next iPhone, which sources in China think could be marketed as ‘iPhone 6SE’ to reflect its iterative nature, may ship with a Lightning-to-audio dongle and still end up selling better than the current-generation iPhone 6s, which hasn’t quite lived up to Apple’s internal expectations.

That’s according to a Deutsche Bank research note issued to clients last week, a copy of which was obtained by Business Insider. The investment bankers also shared their predictions for the next iPhone’s features, based on their supply checks.

“A year-over-year production decline does not necessarily imply a year-over-year sales decline for iPhone 7 vs iPhone 6s,” reads the note. “Apple seldom repeats a mistake, so we believe it will manage iPhone 7 production volumes conservatively.”

That’s assuming the next iPhone brings enough new features and enhancements to the table to encourage existing iPhone owners to upgrade.

According to Deutsche Bank, the 4.7-inch iPhone 7 will have an improved camera with optical image stabilization, a feature previously found only on the flagship 5.5-inch model. Speaking of which, the iPhone 7 Plus will have a dual-camera for better zoom and 3GB of RAM, reads the note.

Other things mentioned in the research note include enhances sound (possibly stereo sound), “professional class water-proofing”, a Home button that uses haptic feedback to simulate a click, a brand new color option, the removal of the 3.5mm headphone jack and, most interestingly, a Lightning-to-audio dongle in the iPhone 7 box which would indicate that Lightning-enabled EarPods could be sold separately.

Source: Business Insider