Not sitting around doing nothing: ‘iPhone’ could add billions to Apple’s revenue

“Apple Computer Inc., known for its secrecy about new products, has given the strongest signal yet it’s working on an iPod phone that analysts said could be released early next year,” Bloomberg News reports.

“‘The biggest part of (Wednesday’s) call was the iPhone,’ said Piper Jaffray Co. analyst Gene Munster, based in Minneapolis. ‘It was the closest we could get to the announcement of a new product from Apple.’ An iPod phone may be released in the first half of 2007, Munster said. Merrill Lynch & Co. analyst Richard Farmer pegged the release in the first quarter,” Bloomberg News reports.

“‘The company is investing heavily in iPod and iTunes engineering and is very enthusiastic about its products in the pipeline,” Oppenheimer said. The mobile-phone market may approach 1 billion units in 2008, Merrill’s Farmer said. Every 1 percent share of the market Apple captures could add as much as $3 billion to the company’s sales, Farmer told clients in a note Thursday after raising his rating on Apple shares to ‘buy.’ That’s based on a device that will sell for about $300, the New York-based analyst said,” Bloomberg News reports.

Full article here.

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32 Comments

  1. While a nice ipod and phone would be nice, I don’t even think I’d buy it for the mp3 part of it. I just want a nicely designed phone that works nicely with Mac OS X. Even the “nice” phones that we have now feel junky.

  2. Yeah, I’m less interested in the music part of the phone and more interested in the portential quality and functionality of the device. But alas, I’m a Verizon customer so I guess I can pretty much kiss anything like an iPhone goodbye before it even gets here. Verizon, the biggest cellular provider in the country, and the absolute slowest to provide any new cellular-based technologies to its customers.

    And living in rural America, it just so happens that the only viable cellular provider I have acces to is – Tah Dah, Verizon.

    Oh well.

  3. With such a huge market potential, this goes against the nay-sayers that do not envision Apple releasing their own phone. Apple, with their design vision, will not just slap phone functionality on the architecture of any existing iPod. They would obviously know that consumers expect a phone with long battery life and would tackle this issue.

    What would be interesting is to see their vision of a great consumer phone with built in Bluetooth (and perhaps a BT headset that could be stored within the phone), easy sync to an address book/calendar (even w/Outlook support), email/txt msging., camera and at least 1000 songs to tote around in your pocket.

    I would think Apple will only add the iPhone as an extension to the iPod, not a wholesale replacement of any current model. There are quite a few people that like the convenience of a single device for music/phone functions. In addition, a stronger iPod for video-centric functions, the nano/shuttle continue on for go-anywhere enjoyment and, at some point, an all out entertainment hub for hi-fidelity.

    Ahh, but this is only speculation and daydreaming today….

  4. For some reason my first post was removed. I even saw it with my own (square) eyes. Maybe MDN doesn’t like me anymore.

    ” width=”19″ height=”19″ alt=”downer” style=”border:0;” />

    Well, here it is again in all its glory (complete with witty pun on the headline of this article).

    “First?

    Ehhhhh…..I got nothin’.”

    ” width=”19″ height=”19″ alt=”hmmm” style=”border:0;” />

    Cubert

  5. First, analysts have no more of a clue than anybody else. In fact, the twinks and geeks in here that are Apple-addicted probably can see Apple trends better than anyone.

    Apple was asked about a phone and Apple replied that they are not just sitting around. I fail to see the connecting assumption that Apple is working on a phone at all. They are more likely working on an all new concept, creating an entirely new market or such a stunning product in an existing market such as the iPod and Imac are now.

    I really would like a job as an analyst. Who do I have to blow to get such a job?

    Maybe, I’ll just start a web page that I only have to steal… oops… copy and paste from other sites, splash it will all sorts of advertising (including the very first to put ads with their own RSS feeds which are suppose to be clear of ads!!!)… and give adolescent Apple geeks somewhere to mindlessly spout off… no… wait.. MDN is already doing that. Damn! Another good idea usurped.

  6. What I would love to see is Apple produce an iPod with bluetooth technology to act as a the interface device for any bluetooth enabled cell phone. You would leave your cell phone in your pocket or briefcase and just interact with your iPod to work the phone. A Bluetooth headset would also be an option.

    Apple could provide – with or without support from phone vendors — personality modules for each phone type supported. This way Apple could sell into the broad cell phone market without having to get involved with a technology that is not one of their core competencies. This approach would use Apple’s greatest strength, its interface design superiority to its fullest. They can leave their competition in the dust.

    Apple, just go for interface ownership of the mobile phone market.

  7. I think we have to keep in mind here that the mobile phone market in the US is ruled by the Wireless Providers like Verizon. It’s not the case in other parts of the world.

    The phones we get in the US are really crap, old, big and boring. You seen the phones they have in Japan?? Even the phones you get in little old Australia (my original home) kick arse over the ones you get here.

    Having said all that, I am sure Apple can do something good enough to beat them all! I just worry that this phone will get locked into Cingular or something.

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