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Analyst: iPhone nano in the Works
by , 8:20 AM EDT, July 10th, 2007
Apple may already be working on a smaller sibling for its iPhone, and we could see it as early as Apple's fourth quarter, according to JP Morgan analyst Kevin Chang. Reuters reports that this smaller and less expensive and limited-function iPhone could be based on the popular iPod nano.
"We believe that iPod nano will be converted into a phone because it's probably the only way for Apple to launch a lower end phone without severely cannibalizing iPod nano," Mr. Chang said.
His information comes from unnamed sources in the Taiwan parts supply channel.
Mr. Chang expects that if Apple is developing an iPod nano-based cell phone, it will come in at US$299 instead of the $499 and $599 price points of the iPhone. If so, he predicts that Apple could sell somewhere between 30 million and 40 million units in 2008. In comparison, Apple plans to sell about 10 million of its recently released iPhone in 2008.
While an iPhone nano could help Apple grab more of the cell phone market without impacting current iPod nano sales, it could have the unwanted side effect of cannibalizing iPhone sales.
Since Mr. Chang's information is based on unnamed sources and can't be verified, we'll have to assume that -- at least for now -- the iPhone and iPod nano are safe.
Apple stock is currently trading in the pre-market at $130.21, down 0.12 (0.09%).
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.
Observer Comments
It may happen, but I doubt it will happen by Christmas because Apple tends to update things that people will buy for other people around Christmas. Most people aren't going to buy another person a phone (parents maybe).
The iPod is due for a refresh, and the Nano last received an update around Christmas.
QuoteBiff wrote:
Biff: Analyst is smoking crack.
Indeed - as should be obvious to anyone who's been paying attention. But apparently a lot of folks in the market have more money than brains, and they bid up AAPL today in response. Only now some cooler heads from the same company have woken up and more or less deprecated the original report:
http://www.appleinsider.com/articles/07/07/10/jp_morgans_us_branch_quashes_iphone_nano_report.html
Tue Jul 10, 2007 9:21 pm Subject: Nano form factor is too small for a phone
The on-screen keyboard in portrait mode on the iPhone is already too small (tho the landscape one in Safari ain't bad at all) so I don't see how Apple could possibly put an iPhone in something the size of a Nano unless they've come up with some unbelievably ingenious new way of implementing a keyboard. The battery size would be another problem. And all the other components, too. But you never know about Apple.
In few years, some analysts will come up with a idea that Apple is working on booting up any PC computer to Mac OS X from connected iPhone / iPod. - Linux style. Apple is the only company that could do this successfully. And it would rock. What a great surprise it will be!!!
(Note: I'm NOT working on Apple, i got no insider information. - i do consulting for companies looking for the next big thing. Outsider information is enough...)
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