“Barclays Capital analyst Ben Reitzes this week re-launched speculation concerning Apple’s plans to diversify its iPhone line with the introduction of a less well-featured ‘iPhone nano,'” Jonny Evans reports for Distorted-Loop.
“In a note to clients despatched this week Reitzes… speculated [that] Apple may plan to introduce a cheaper entry-level iPhone to widen its addressable market. The speculation suggests the new device will be like an iPod, but won’t have the capacity to download and use App Store applications,” Evans reports.
“Speculation that Apple plans to diversify its iPhone product range has been ongoing since April 2008,” Evans reports.
Full article here.
NO WAY! Crazy talk.
If anything, it’s the other way around. Same screen size. A phone that can download Apps, but that lacks GPS, speaker, accelerometer, autobrightness, bluetooth, 3G, and any other little feature they can leave out. But that they can still sell music, videos, and Apps for. Take out the phone features. Leave in the computer features. That’s best for the world domination plan. Anyone buying one of these phones for the price will want the better one within 2 months.
Later, when they introduce the fabled tablet PC, it will have both computer features AND phone features, along with a big screen and a big OS X. Also wireless keyboard mouse, and headset optional.
Did I say mouse? I meant trackpad.
That’s just stupid. I’m not even going to go into why, because if you can’t see it, you’re stupid too.
These idiots who work at banks have no idea what Apple will or won’t do. I just ignore them.
I don’t see this happening. Apple would have to carve out another mobile device niche and there’s no reason to at this point. When you consider what the iPhone replaces (mobile phone/pda/ipod/game system) it’s actually a terrific value.
If this product were real it would be aimed at replacing the low-end handsets in the market, not the smartphones. Even the low end flip-phones though need to do text entry and anything smaller than the current iPhone just won’t work for that.
The only alternative here is a smaller form factor with a (virtual) T9 text entry. I don’t see Apple doing that although stranger things have happened.
pathetic, shocking. And people like that actually provide analysis people rely on. I agree its pointless to even go into why, a waist of 30 seconds.
@little man
I couldn’t have said it better myself.
@ Logan and little man and paulo
ditto
The iPhone “brand” is a) a ‘smart’ phone with b) a large screen. It lacks certain amenities of other smart phones while including some features either missing or poorly managed on other smart phones. Thus Apple cannot really afford to de-content its basic model in order to create a low-end version. The price will drop as the costs drop, and either features will be added to the current models or new higher end models will emerge.
The “nano” brand is not logical for the iPhone, not in Apple’s world of sensibilities. They have a good-selling product at their price point, lowering that price point will only manage to reduce their profit margin. That is Dell’s business model, not Apple’s.
Imagine if the current iPod nano looked and worked exactly the way it does now, except that it could make and receive phone calls. That thing would be a huge hit.
With the raging success of the App Store, why would Apple introduce a product that could potentially introduce a lot of confusion with their products? Doesn’t make a lot of sense to me. What do the analysts want? Apple to make a $49 phone? Laughable.
Just like low priced computers, I don’t think Apple will go in on the low priced phones. The phones in this sector are cheap, throw-away, and are comoditized by the simple fact that they come with a contract plan.
Of course, like banks can even manage themselves, let alone see how other companies will be run…
The only way this seems to make sense (and I don’t think it will happen, but I have no way of knowing for sure) is if the end game strategy for Apple is to do to phones what they did to portable music. The iPod and it’s assorted offspring all fill a specific niche in the market, and while Apple makes money selling them, the end game appears to be both to sell music (low margin), but more importantly, to introduce the masses to Apple and it’s design and ease of use.
If Apple was interested in the same strategy for the phone, then it would make sense to roll out a lower cost, lower feature phone.
What makes me think it won’t happen is that it wouldn’t really be an iPhone. All the iPods (with the exception of the Shuffle) have the same basic functionality while the iPod touch adds quite a bit to the mix. I’m not sure Apple would want to reduce features and functionality in the iPhone brand.
I’m one amongst millions of people waiting for a cheaper PREPAY iPhone.
bankers = stuffed shirts who have a serious case of rectalcranialosis…
To see the real world, they need to have a window installed in their stomach…
Case in point:
Cheers…
I would definitely be interested in a “slimmed-down” iPhone.
How about just the phone with calendar, contacts, calculator and free Wi-Fi… with pre-paid… no contract plans.
There already is an iPhone nano; it’s called the iPod touch. The mobile OS X platform is more valuable than either of those products alone. Apple will do nothing to threaten that platform (except possibly expand it upwards with more features not less).
From a business perspective, the only viable option is a totally new form factor using the same mobile OS X platform — such as a mini laptop.
Apple will not make an iPhone without app ability. This is stupid!!! Of course, they did make the Shuffle.
plain stupid. the idea of the iphone is to be the ultimative convergence device, delivering all the functionality possible in one device as small as possible. that is the big trend in the phone-business. the media-player, phone, gps and handheld gaming machine all in one. to leave some of that functionality out doesn’t make any sense.
i think apple’s strategy is to sell the 3g as it is well into 2009, bring it to more countries and if necessary do more temporarily special deals like now in france to spur demand. the iphone 4g, available from july 2009 will then be with as many carriers as possible (less exclusive deals) and the price will be a little lower also. that is the winning ipod strategy: every year a new, better generation and every year a slighly lower price.
I wasn’t much fond of Reitzes analysis when he worked at Merrill Lynch. He hasn’t gotten any better since moving to Barclays.
The iPhone is a cellphone. It isn’t a Smartphone or music player, or a gaming device.
The iPhone is a PLATFORM that allows you to use it for any one, or more, of the above. Bought separately those devices can cost you $100 – $300 each.
Don’t want cellphone functions? Get the iPod Touch. Same price sans the monthly fees.
What the iPod/iPod Touch needs is more power, not a lower price. Think PA Semi and Papermeister. Apple’s roadmap for the iPhone/iPod Touch PLATFORM is quite clear, and it is not price driven.
Sorry. But I agree with those who thinks this is stupid. More than that its retarded……RETAR-TED!
Apple will more likely take their current iphone and just sell it cheaper. And at the same time introduce an updated model with more features for more money.
I’m sure the fabled iPhone nano will never happen for many of the reasons cited above. However, an iPod nano with call capabilities would sell like crazy but would probably cannibalize the already strong nano market and even the iPhone to some degree.
I’d love it, though, because they could probably sell it to more than just AT&T;in the U.S. because it would be a different product and wouldn’t be subject to whatever long term deal Apple has with AT&T;for the iPhone.
Then maybe I could actually own one instead of my current touch/Razr setup here in the Midwest where few GSM towers exist outside metro areas.
Yep, the market has changed, feature phones are on the way out, and people are upgrading to smartphones. Eventually, all phones will be smartphones. Apple is not going to downgrade and make a nano with only music and phone. It’s going to go forward, and release an iTab or an iDevice, or a Knowledge Navigator, that’s about twice the size of an iPhone, but folds open.
paulo, ‘ I agree its pointless to even go into why, a waist of 30 seconds.’
Surely you mean, ‘a waist of 30 inches’. You’re pretty slim.