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. It’s easy to sit back and claim that the current iPhone is WAY too expensive, but the current iPhone economics say otherwise – it’s worth what people will pay for it, and at the moment that doesn’t seem to be a problem. There is simply no reason for Apple to undercut itself while iPhones are still flying off the shelves. So they probably won’t. I still say a crippled “iPhone Nano” is a stupid idea. In two years, a phone without basic computer functions will be an antique. To some of us they already are.

    -c

  2. “….At 4 Gig and 8 Gig we already have an iPhone Nano. What is Apple going to give us a 1 and 2 Gig iPhone? I hope not.”

    @Drunk Cheney, it’s not the storage capacity, it is the feature set which will determine an iPhone nano.. Most likely a iPhone nano would be without all the internet functions.. Just phone, music and contatcts.

  3. “…So why didn’t Apple “convert” the big-size iPod into the iPhone, since the that iPhone will cannibalize that iPod’s sales?”

    @Ken1w

    Because the iPod stores up to 80gb, the iPhone maxes at 8gb.

  4. Apple has captured so much attention in the past ten years, people expect FAR more from them than other companies. It’s almost like the 80s repeating. This time, though, Steve is here to ride the wave. I mean… tame Nature itself. ” width=”19″ height=”19″ alt=”tongue laugh” style=”border:0;” />

    AT&T is also coming on strong now that it’s back in the public eye. I’d bet that when Steve publicly stated that he wouldn’t “forget” the trust AT&T put into Apple, the feeling is somewhat mutual. At least, AT&T is likely very willing to have Apple’s cool factor spill over onto them. That means more focus on consumer experience. At least, I hope so…

  5. I think Apple is on to something here.
    I just need a phone – to make calls.
    Most people don’t need an all in one everything device.
    I don’t chat, look at maps, e-mail and surf the web all the live long day…. jeez. And as for a camera in a phone, the photos are lousy. Time and place for everything. A good phone with a killer easy to use interface at a good price will kill all the other cell phone mfg’s who have yet to figure out decent ergonomics to phones.

  6. @ Cedric Lane,

    You are so right, only rumor (this is kinda a rumour site isn’t it?) and this is pure speculation.

    But an i-phone nano could follow the same marketing and pricing structure (not same price, just structure) as the successful Ipod models. Maybe the I phone nano would be made available to all Carriers.
    The compelling reason why Carriers and consumers would want an Iphone nano is the unique multi-touch interface that renders all other cell phone interfaces obsolete. Verizion and T-mobile et. al. customers wouldn’t necessary have to ditch their contract, just upgrade to a I phone Nano, Carriers would offer discounts or as a come ons to upgrade or extend existing service plans… Apple wins by selling a bazzillion phones, and cell phone carriers keep their Customer base. Again pure speculation, but it might make Samsung and Motorola and Nokia not to happy even if a piece of this is true.
    The stealthy part of this speculative scenario is that by offering a ‘every-man’ Iphone lite or nano or whatever, sold by all carriers, Apple, is converting more people to a level of comfort with the new tech interface called ‘multi-touch’ which serves as an entree to Imacs or high end I phones, or ITV …. All which will be sporting the multi-touch interface pretty soon (again speculation).

  7. It’s amazing How we live in a world where big (HD/Plasma) and small (phones/PDAs) can co exist so peacfully. Oh and I just thought of something how are people with long finger nails gonna cope with the iPhone?

  8. When you see iPhone capacities double or triple from where they are now, then this will happen. Not before. When the iPhone hits 24GB+ RAM then they will announce this with 4-8GBs. It will follow the same route as the iPod/iPod mini. Apple had it right then and they will use the same strategy. Wait and see. But don’t wait for this “iPhone nano” because you won’t see it for a couple years.

  9. To be honest I can’t picture myself dialing a number with a click wheel.

    I personally think everyone may be over complicating the matter, all the article stated is that Apple is filling for a multi-functional device with a click-wheel.

    Maybe Apple is finally upgrading their remotes, and adding the nano’s click-wheel with possible Wi-Fi or Bluetooth?

  10. CNBC reporter, Erin Burnett, now giving the “iPhone Nano” claim by JP Morgan’s Kevin Chang creedence this morning on Joe Scarborough’s show. However, I don’t buy it.

    First off, Apple would be foolish to submit drawings related to future products to the patent office in ‘literal” form for all to see. Patent drawings are meant to be interpretive; and a tech-savvy company like Apple is smart to try and lead people down false paths while these ideas are being explored.

    The timing might seem odd, considering their recent payout to Creative Technology, but Apple could simply be exploring a new 3D selection menu, a la Front Row. I think it makes sense, from a branding point-of-view, to bring Front Row’s menu design to the iPod.

    I think Chang is a nimrod for calling this one. I don’t doubt that Apple might explore a smaller, less feature-rich version of the iPhone (Actually, based on the iPhone’s amazing number of “early adopter” sales, I really DO kinda doubt it.) but for all of the money Apple has put into the iPhone’s design and launch, not to mention the huge risk doing so, it makes zero sense to backtrack on the product’s design by launching a smaller version of an iPhone that looks like yesterday’s iPod. The glass and metal design IS the iPhone. It may also be the future design of the iPod…but the scroll-wheel iPod is not (well, shouldn’t be) the “back to the future” design of ANY device carrying the iPhone name.

    In other words,
    A) iPhones will always look like iPhones
    B) iPods of the future might start looking more like iPhones (Apple’s commercial says the iPhone is the best iPod they’ve ever made), yet retain some of the scroll wheel’s conveniences
    C) iPhones will not look like yesterday’s scroll wheel iPods

  11. Fools!

    It’s a Plug in iPhone adapter for iPod Nano!

    Instantly own the low end with a $149 .99 plug-in that’s controlled by the nano!

    Brilliant: instant access to the large pre-installed base of nanos.

    Wow

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