Analyst: Apple mulling low-cost ‘iPod phone’

Apple “is on track to sell 4 million iPhones when Apple [CEO Steve Jobs] addresses the San Francisco crowd [during an Apple special event scheduled for September 9th], according to RBC Capital Markets analyst Mike Abramsky,” Scott Martin reports for Red Herring.

“‘We continue to expect iPhone upside (our outlook remains 14M CY08, 24M CY09), along with ‘halo effect’ impact to global Mac sales,’ he wrote in a note to clients,” Martin reports.

“At Apple’s upcoming September 9 event, the company is expected to update its iPod line, including redesigned iPod Nanos, and cut prices, among other announcements,” Martin reports. “RBC’s analyst said Apple may also be mulling a lower-cost “iPod Phone,” a voice-only one priced below $99 with a service contract. That phone would target international sales and push Mac sales worldwide, the analyst noted. He said it wasn’t expected at the upcoming event.”

Full article here.

20 Comments

  1. “a lower-cost “iPod Phone,” a voice-only one priced below $99”
    I can’t see Apple getting into a commodity type of phone. I could see Dell doing that, but not Apple. There’s nothing to show off the software.

  2. You already received your Mac Book Pro upgrade this year, back in February. If you haven’t dumped your 12″ Power Book yet — there is probably a greater reason than processing power or whatever you’re gripping about.

  3. I just want a phone that works well as a phone. If it has an iPod in it, that’s great. I haven’t had a decent cell phone for the last 6 years. Each one pisses me off at some point in time.

  4. I want to see if/what they do with the mini. I’d like to see better video and lower price. A mini with super-drive starts at $800 (it costs $200 for a super-drive?!?) and doesn’t come with monitor or keyboard. Add those and you got > $MacBook but less capable than the MacBook (less memory capability, slower drive, slower video, not portable). Drop the price on the SD version of the mini to what the Combo Drive version costs and you’ll see Mac sales skyrocket and Dell plummet.

  5. I don’t like criticising others, but really, what does this post tell us, apart from the fact that he seems to have missed the fact that MacBook Pro’s have been around for more than two whole years??

    Old Guy With A Beard wrote: Never mind the iPhones, iPods and all the rest.

    WHERE IS MY NEW LAPTOP?

    I’m still running a PowerBook G4 12 inch and it is time for a new laptop, but not until the pro line in upgraded. Steve? How about it?

    Is that a STUPID post or what.

  6. iPhone web apps are very cool, but for me they are not worth the data plan. The unavailability of a voice-only plan is the primary obstacle to my purchase of an iPhone. At an Apple retail store a couple of days ago, the rep said that he had heard much the same from a number of other customers.

  7. Macaday“, you need to learn to respect your elders. We have more senior moments than you kids … and, if you are lucky, you will, too.
    I can see a “limited” iPhone model. Mostly just a handset with texting and a camera but with some of the added iPod features. No “surfing” or Internet-enabled apps, for example. But … I don’t think Steve Jobs will see the future in such a model – not for Apple.

  8. Seems to me Apple is tracking the iPhone just like the iPod in 2001. It started out as 1 product then blossomed into other products and price points. It won’t happen right away but it would be logical to go and pickup marketshare at lower pricepoints. iPhone mini anyone?

  9. I, too, have a PB 12″, and I’m definitely looking fwd to a laptop refresh. I don’t want a 17″ or 15″ MBP, but I do like my aluminum, so the MacBook Air will probably be my next portable. 3 1/2 years ago I spent $1699 for a 1.5 GHz G4 and 80 GB HD, and 3 1/2 years later I can’t justify spending $100 more for a .1 GHz and 0 GB increase. The sweet spot for me will be at least a 1.8 GHz processor and 120 GB HD or 80 GB SSD. Anyone who thinks that’s stupid apparently buys new Macs more often than every three years.

  10. A voice only phone makes no sense to me. Apple already has a low cost phone with a very good data plan that could serve the masses and continue to create itunes and app store sales. It makes more sense that Apple will cost reduce the GEN1 phone using PA Semi microcontroller to integrate many peripheral functions thereby lowering cost dramatically. Leave the edge radio for data plans that are better or equivalent to GEN1 data plans.

    If this voice only phone ships, it would be a major mistake on Apple’s part because there will be nothing to differentiate it from others and it will not drive content distribution.

    Using the Edge radio was a good tradeoff for Apple in GEN1. We now see, with all the complaints about the 3G, why Apple went with the Edge from the start. However, the 3G complaints mainly insuficient battery life and connection loss will most likely be resolved in their GEN3 or GEN4 update. I think that PA semi microcontroller is the pivitol agent in Apple’s battle for the mobile world.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.