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.

  8. “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”

    Problem with that is the stock market doesn’t respond in most part to what guys like this say. There could be major external factors that cause a rise or fall in AAPL.

    Trying to associate cause and effect in cases like these are very difficult. But you wouldn’t know that reading these forums. People on here think because some nincompoop writes a bad magazine article about Apple ti causes the stock to fall. Not usually the case.

  9. Dumb ass analysts. Hello! If they really had the neurons to think about it, they would realize that the Multi-Touch interfaces makes the click wheel OBSOLETE.

    Those patent filings were probably done before the light bulb went off in someone’s head, i.e. the moment they realized that you don’t need to imitate a Click Wheel virtually when you can use gestures to perform the same tasks much more naturally.

    And somehow, JP Morgan thinks Apple’s gonna go back to the inefficient Click Wheel when flicking, swiping, and tapping have shown itself to be superior, just because a virtual Click Wheel is listed on an obsoleted patent application.

  10. One of the problems with an iPhone nano is the touch screen. That adds significant cost to the iPhone, and a smaller screen would be less desirable and impractical to use anyway. Plus, think about your mobile phone – if it gets much smaller than an iPhone, it is difficult to use and the mic is farther away from your mouth, so naturally it will pick up more background noise.

    Apple may introduce an iPhone nano, but I think it will definitely be a neutered version of the iPhone out of necessity. I don’t see internet browsing, movies, or other such features being practical.

    At the same time, the iPod nano would have to have significantly more storage capacity or cost much less (which is not likely). There has to be some differentiation between the two products.

  11. To the Analyst:

    Ever had the slightest idea that this could be the patent for another ipod…and not a nano version of the iPhone? Aren’t you the dimmest bulb. Sheesh. Which sounds more reasonable…I wonder ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  12. I would not be surprised if he got his signals crossed, and the fuzzy information from which he made his conclusions was actually a description of components for a next generation iPod, not an iPhone. He’s playing pin the tail on the donkey with the snippets of information that he’s gleaned from sources.

    That said, right or wrong, I can’t imagine that there will be just one model of an iPhone in the future. Steve Jobs described Apple as having three legs of a stool, one being the Mac, the other being the iPod, and most recently the third being the iPhone. It leads me to conclude that Apple will likely be developing different versions of the iPhone for different price points and functions, just like the iPod family today. That said, another poster’s idea of an iPhone Shuffle was a hoot!

    Remember kids, this is Version 1.0 of the iPhone, akin to the original Mac or iPod. Fast forward a couple of years and imagine. The future will be amazing! You heard it here first! Well, actually, second. Nope, uh, make that 14th. Whatever….

  13. i’m sure Apple will make a cheaper version of the iPhone, but not by “converting” the iPod nano, that’s just not how products are made.

    and i don’t believe that this cheaper iPhone will be without a touchscreen.

    a smaller screen is not a problem, except for the keyboard, i hope apple finds a way to solve that problem, they could use slide out hardware keyboard, but that would not help decreasing the price of the iPhone.

    the easiest way to reduce the price is to get rid of the camera and the iPod functionality (reducing the ram to 1 GB)

    i don’t want an iPhone without wifi/mail/safari.

  14. They HAVE to do something because the current iPhone is WAY too expensive for most people. Plus, AT&T sucks camel ass. The Edge network sucks ass as well. You watch the afterbirth of this cluster F&*K occur in the next few weeks.

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