Apple Inc. plans to launch a cheaper version of the iPhone in the fourth quarter that could be based on the ultra-slim iPod Nano music player, according to a JP Morgan report. Kevin Chang, a JP Morgan analyst based in Taiwan, cited people in the supply channel he did not name and an application with the U.S Patent and Trademark office.

Chang said a way to follow up the iPhone with a cheaper version would be to convert the Nano into a phone and price it at $300 or lower.

Another analyst Gene Munster of Piper Jaffray said he expects Apple to bring out iPods that resemble iPhone. “We believe the iPhone reveals much of what the iPod will soon be.”

If design engineers can come up with appropriate product – the sales projections in the article may be reasonable. And it all fits in with Steve Jobs’ decision to turn Apple Computer into Apple, Inc.



  1. SN says:

    Apple should sell an iPhone based on the cheaper Shuffle. It would randomly dial numbers from your phone list.

  2. Mike says:

    I would say this is definitely wishful thinking on the part of an over-zealous investment “analyst.”

  3. mark says:

    When did this blog turn into iDvorak iUncensored? Sheesh.

    2. Good one.

  4. undissembled says:

    Yeah… and have make a deal with Verizon to cover the rest of the USA with iphones.

  5. Dauragon88 says:

    That would be a pretty obvious and neat idea.

    I am personally waiting to see what the other cellphone manufacturers will come up with to compete.

  6. Jeff says:

    The iPhone already employees flash memory of 4/8gig. I think what the phone really needs is a lot more storage (say at least 32gig) if not maybe 120gig. This of course is not possible given the current state of flash memory development.

    I think what Apple really needs for the iPhone is a true application framework for third party developers. I have yet to even see something as simple as an AIM compatible messenger (eBuddy or web not withstanding).

  7. OhForTheLoveOf says:

    IT’S A PHONE.

    Wake me up when somebody invents an interesting technology.

  8. moss says:

    #6 – Meebo now works with the iPhone. Or so I’ve been told by Google.

  9. chuck says:

    Apple sells the iPhone for $499 or $599 and reportedly makes as much as $270 profit on each one. And they’re selling truckloads of them.

    Why would they be stupid and decide to come out with a cheaper version?

  10. heyzeus says:

    #0: “And it all fits in with Steve Jobs’ decision to turn Apple Computer into Apple, Inc. ”

    Computers have become a commodity just like the male penis. It’s no longer the hardware that’s important it’s the hardware’s personality (applications).

  11. Mike Voice says:

    #9 Why would they be stupid and decide to come out with a cheaper version?

    Its not stupid if they wait until the sales of the more-expensive one slows, or levels-off.

    Once everyone who is going to pay 499/599 has already done so, it would be safe to start going after the people who would only pay 399/499.

    Then the 299/399 group, followed by the 199/299 group ….

    You get the idea. Just look at the range of iPod models.

    Reminds me of an article, a few years ago, talking about how Sony dominated the “Walkman” market. i.e. Once in the lead, fragment the market by offering all kinds of different models – sports, with radio, sports with radio, colors, recorders, etc.

    Any competitor trying to get into the “Walkman” market had a hard time getting any visibility amongst all of the Sony models.

    Most recent replay of that was MS’s Zune. One new device trying to compete against “the iPod”… but there isn’t just one iPod, so they entered a fragmented market with a single device.

  12. Angel H. Wong says:

    Apple is just trying to teach the world their OSX is hackable.

  13. moss says:

    Uh, #10 – you’re rushing out to buy a male penis?

  14. James Hill says:

    Personally I don’t see this happening, but there is logic behind the thinking: People would couldn’t afford $500 may be able to afford $200.

    That being said, it isn’t going to happen. Next version of the iPhone, with double the Flash memory and 3G support, will come out at MacWorld.

  15. Matthew says:

    Just look at how wrong the predictions about the iPhone were.

  16. JimR says:

    Once again, the naysayers don’t have a clue as to what sells and what makes a lot of money. Microsoft is probably worried by now, seeing as how Apple has proven it’s capability in the smart phone business. Microsoft has been trying to get into the cell phone business for years and has managed to get a measly .4% of the world market or 4 million cell phones a year. Apple sold an estimated 700,0000 cell phones the first weekend and are likely way over a million by now. 10 million by the end of 2008, a full 1% of the market, seems feasible. On top of that an estimated 3-4% market for the Nano Phone … watch and learn.

    Apple Inc. is currently worth $115 billion, almost half of Microsoft $285 billion market cap.

  17. Bill says:

    I want one, but what I really really really want is an iPod that is like the iPhone without the cell phone part… (but with WiFi)

    I have a great Motorola cell phone that I’d really like to keep. But I’d add another Nano sized one… It doesn’t have to be super fancy, just work as a phone.

    my 2c…

  18. JimR says:

    ECA, that is made by First International Computer Inc., but is not listed as a product. They started OpenMoko, a company inside the FIC Group to market it. Ask yourself why…

    It was supposed to be on the market in January, but it’s still under development. Now they say October. The only reviewer was given a phone WITHOUT a battery so they couldn’t see if it even turned on, and yet they are taking on-line orders… BTW the online securtity certificate they are using is suspect (Do Firefox users get same message?).

    The BS / Risk meter is zinging on this one. Be Careful.

  19. Gregory says:

    It’s probably rubbish… but one line is very sensble:

    “We believe the iPhone reveals much of what the iPod will soon be.”

    Well yes. That I can believe. The iPhone is the best iPod I’ve used (I’ve use all of them since the 3G, inc shuffle and the nanos, though I only own a 5G). The interface makes sense, the screen is great, the video is awesome.

    All they need to do to stop me using my ipod ever is to allow me to drag and drop files to the iphone in itunes, and also to playfrom it, rather than the stupid sync model they have now.

  20. hhopper says:

    Pop Sci is predicting an iPhone-like iPod by September.


    Click photo for info.

  21. sdf says:

    I can’t imagine the next iteration of the ipod not resembling the iphone.

  22. doug says:

    #21. It is a safe bet that, before the holidays, Apple is going to come out with a wide-screen, touchscreen iPod. Probably a big, fat HD, too.

    wi-fi? Maybe. perhaps wi-fi sync, too, or buying songs and videos on-line directly to the iPod. in other words, the things that should have been in the Zune. toss in stereo bluetooth for headphones and a remote.

    #20. I concur – maybe it is a different set of headphones, but it even sounds better than my 3.5g iPhone. I don’t even mind going from 30 gig HD to 8 gigs flash. it is still only about 2/3 full.

    I figure that Apple will hold off on an iPhone with a 3g connection until AT&T gets better coverage with HSDPA (one of the cited reasons for not having it) and by then those 2 year contracts will be running, batteries in v 1.0 will be dying, and there will be a lot of upgraders ready to splurge again.

  23. god says:

    #19 – no certificate msg w/FFX

    And that’s not even a prototype in the illustration – it’s artwork!

  24. GregA says:

    The “Will it Blend” iPhone edition is up. http://www.willitblend.com/

  25. w5cdt says:

    Wishful thinking…but……
    Chang and his superiors should be *fired* for making such
    extrapolatory leaps regarding Apple’s product plans based
    upon patent filings. As a holder of 13 patents and with 29
    years of high tech experience I would *never* make any
    conclusions about product plans based upon patent filings!
    We technologists patent things all the time that are sometimes
    used to exclude competitors rather than protect products
    in the pipe.

    Shame on J.P. Morgan for letting this junk report out.
    What other *bad* advice is J.P. Morgan giving us?

  26. James Hill says:

    The story has been retracted by J. P. Morgan. Game over.

  27. Mister Mustard says:

    I wonder if the nano iPhone will have the same small print as the regular one:

    http://tinyurl.com/yw5boh

  28. JimR says:

    #28, thanks for the update James.

  29. Jim says:

    Duke University’s Wi-Fi network is being trashed by junk iPhones. More imported gadget junk to fill U.S. landfills.


0

Bad Behavior has blocked 11295 access attempts in the last 7 days.