James Delahunty
10 Jul 2007 4:06
Rumors have been circulating about Apple Inc.'s plans once again for future tech gadgets. A patent recently filed by the iPod-maker seemed to suggest that the company was intending to introduce a Nano-style iPhone at some point. To add some authenticity to the rumors, JP Morgan analyst Kevin Chang cites unnamed sources in the supply channel that are backing up the original rumors associated with the patent filing.
It indicates that the device would be a smaller, cheaper verison of the iPhone that uses an input system like the iPod click-wheel instead of the touchscreen. Chang goes further however to suggest that the device could replace the current iPod Nano's on the market.
"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," Chang is quoted as predicting. If the rumor is true, then it indicates that Apple is looking to break into the lower end in order to gain market share. Apple has always targeted the margin-rich higher-end of the spectrum.
While the company's iPhone enjoyed an excellent launch and a massive amount of publicity, its sales will be limited to a small percentage of the market due to its high price tag. In the United States, consumers tend to spend around $100 on a phone. Apple's iPhone comes in two models, a 4GB model for $499 and an 8GB model for $599.
Source:
Ars Technica