JP Morgan analyst: Apple planning cheaper ‘iPhone nano’

“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,” Reuters reports.

“Kevin Chang, a JP Morgan analyst based in Taiwan, cited people in the supply channel that he did not name and an application with the U.S Patent and Trademark office for his report dated July 8,” Reuters reports.

“Apple filed a patent application document dated July 5 that refers to a multifunctional handheld device with a circular touch pad control, similar to the Nano’s scroll wheel,” Reuters reports. “‘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.'”

Full article here.

Kevin Chang, Conclusion Jumper.

53 Comments

  1. We know how often these guys are right about Apple. Sometimes they get it right in broad general terms but seldom on anything this specific.

    I don’t see it, this patent could be simply for a “multi-function device” and not a nanoPhone.

    Oh, and one more thing, the link in the story is mal-formed and missing an initial “h”

  2. I doubt this one. But one thing Apple could do immediately is drop the price on the 4GB iPhone. Since it was reported that it only costs them around $220 to build, and since the 8GB is outselling the 4GB model by a huge margin, they could have the following pricing and still make money:

    4GB iPhone $399
    8GB iPhone $599

  3. Even after such useless news the stock took a fall
    We need a website that keeps the predictions of such analyst and ritually calls them to task when their crystal ball viewings fail to materialize

  4. “‘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,,,

    ———————–

    Though I believe a smaller iPhone or iPhone nano may be in the works.. I highly doubt an iPhone nano will REPLACE an iPod nano..

    I use my nano almost strictly for running with my Nike+ kit. I don’t want to be strapping a phone to my arm and subjecting it to rain and sweat.

    The small form factor and storage capacity of iPod nano’s definitely have their place. Apple would be foolish to force people who want a small music player to commit to a two year AT&T contract.

  5. I think this is probably more right than wrong. I believe that the iPhone development will follow the same basic release path as the iPod. There will – eventually – be an iPhone Nano, and even an iPhone Shuffle. Exactly what form and feature set these will have only Steve knows. I also think that there will be some higher end, corporate-aimed devices to compete with the Blackberries and other high end smart phones.

    Personally, an iPhone with just the phone, contact list and iPod capabilites selling for around $150-200 would be a killer, just like the iPod Nano.

    In any case, the iPhone revolution will also take several years (just like the iPod) to come to fruition.

  6. That makes no sense…

    > 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’s saying there will be no market for the iPod nano if there was a low-end iPhone? Therefore, a low-end iPhone will replace the iPod nano? So why didn’t Apple “convert” the big-size iPod into the iPhone, since the that iPhone will cannibalize that iPod’s sales?

  7. My honest opinion is that I haven’t been convinced enough by what I’ve seen to want to spend that kind of money on a new phone. I’ve been pretty happy with what I’ve got. I get my music wirelessly sent to my Black Jack through the “M” app from Mercora, and withe all the other features I have on my Treo, I see no reason to run out and get another phone.

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