The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst: Apple Working on 2nd Cell Phone, Red Nano Selling Well

TMO Reports - Analyst: Apple Working on 2nd Cell Phone, Red Nano Selling Well

by , 1:45 PM EST, November 20th, 2006

American Technology Research analyst Shaw Wu on Monday issued a report detailing his belief that Apple is working on a second iTunes cell phone, as well as his thoughts on sales of the new red iPod nano. Of the second cell phone, he wrote: "We are picking up that AAPL is working on a second in-house iTunes cell phone that will also feature 'messaging' capabilities. We believe it will focus initially on mobile IM as opposed to e-mail. From our understanding, it will leverage off existing iChat software that runs on MacsWe believe this product is AAPL's 'smart phone' and could be branded as 'iChat mobile.'"

As for Apple's first iTunes cell phone, which has yet to see the light of day, Mr. Wu said that he "remain[s] uncertain on the exact timing ... We believe its 'go-to-market' strategy continues to be the gating factor (MVNO [mobile virtual network operator] vs. traditional carrier or both). However, we believe we are closer to resolution and our conviction remains high that AAPL's first cell phone will be released in 2007 -- potentially 1H07."

Apple had also been long-rumored to be preparing to join U2 front-man Bono's Project RED, which benefits AIDS research. The company finally signed up to the cause with the release last month of red 4GB and 8GB iPod nanos. Mr. Wu said that his sources indicate that the new MP3 players "are selling well." He currently expects Apple to sell 14 million iPods this quarter, "but given RED nano momentum, we believe our forecast will likely turn out conservative."

Looking beyond December, the analyst explained: "While AAPL shares have appreciated significantly in recent months, we continue to believe shares still have sizable upside ahead of MacWorld Expo in January 2007. We see several catalysts over the next few quarters including: Mac OS X Leopard in 1H07 that should help maintain strong Mac momentum, iTV launch in 1Q07, movie content partners beyond Disney, new iPod features including widescreen and wireless Bluetooth capability, and cell phones in 2007."

Mr. Wu reiterated his "Buy" rating on Apple's stock, with a US$92 price target. At 1:47 PM EST on Monday, the company's shares were selling for $86.62, up 0.9% for the day.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Digg!

Recent Headlines - Updated November 27th

Thu,8:00 AM
Happy Thanksgiving from The Mac Observer!
Wed,9:36 PM
Apple Reportedly Building Chinese Sapphire Plant with Foxconn
8:40 PM
ACM 282: The Steampunk, Sapphire, and Apple Watch Episode
7:46 PM
Melissa Holt on MacJury’s Holiday Gift Guide 2
4:42 PM
Steampunk USB Flash Drives with Motorized Gears - Really!
4:05 PM
Black Friday 2014: The Best Mac Deals
3:10 PM
iOS 8: Control Which Apps Can Access Your Private Data
2:50 PM
The Name Your Own Price Must-Have Mac Bundle
1:36 PM
TMO Daily Observations: 2014-11-26
10:46 AM
5 iPhone Apps to Cut Your Thanksgivings Stress
8:50 AM
iOS 8 and OS X Yosemite: Naming Group Conversations in Messages
Tue,9:01 PM
BuzzFeed Uses Apple Watches to Incentivise Staff
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!