Tuesday 10 July 2007

Apple may launch Nano-based iPhone

iPhone manufacturer could release a smaller, cheaper version of the touchscreen phone later this year, JP Morgan analyst says.
iPhone 5.0:What's next
Long lines of people turned out June 29 when U.S. sales began for the iPhone, a mobile phone with a music player and Web browser. Analysts have estimated that sales in the first weekend were as high as 700,000 units.
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. The iPhone sells for $500 and $600, depending on storage space.
"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," he said, noting that the new phone could have "rather limited functionality."
Another analyst, Gene Munster of Piper Jaffray, said he expects Apple to bring out iPods that resemble iPhone, which features a touch-sensitive screen, later this year. Such products would help stop iPhone from eating into iPod sales.
"We believe the iPhone reveals much of what the iPod will soon be," Munster said in a note to clients, adding that "iPods with some of the touchscreen features of the iPhone should lessen the impact of cannibalization."
Kerris also declined comment on Munster's note.

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