On 9 Jul 2007, marc318@hotmail.com (Marc) wrote:
>Apple plans cheaper, Nano-based phone
>Chang said follow to iPhone could be priced at $300 or lower
>Reuters
>Updated: 2:52 p.m. MT July 9, 2007
>Apple 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.
>
>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.
>
>Apple filed a patent application document that refers to a multifunctional
>handheld device with a circular touch pad control, similar to the Nano’s
>scroll wheel.
>
>Apple did not respond to requests for comment.
>
>Long lines of people turned out on June 29 when U.S. sales began for the
>iPhone, a mobile phone with a music player and Web browser. Analysts have
>estimated that sales in the first weekend were as high as 700,000 units.
>
>Chang said a way to follow up the iPhone with a cheaper version would be to
>convert the Nano into a phone and price it at $300 or lower. The iPhone
>sells for $500 and $600, depending on storage space.
>
>“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.”
>
>Because of the anticipated lower price, 2008 sales of 30 million to 40
>million units “is achievable,” Chang said.
>
>This would be a much larger volume than is expected of the first iPhone,
>Apple has targeted sales of 10 million units in 2008, which would give it a
>1 percent share of the global market.
>
>
>Sales of the iPhone are expected to be limited to a small percentage of the
>market due to its high price tag, particularly in the United States where
>85 percent of consumers tend to spend $100 or less on cell phones.
>
>But analysts predict that a cheaper phone from Apple, which leads the
>digital music player market, could pose a much bigger threat to
>long-established phone makers such as Nokia, Motorola, Samsung Electronics
>and Sony Ericsson, owned by Sony and Ericsson.
>
>Copyright 2007 Reuters Limited. All rights reserved. Republication or
>redistribution of Reuters content is expressly prohibited without the prior
>written consent of Reuters.
>url: http://www.msnbc.msn.com/id/19682602/

Verizon is so-o-o-o-o-o-o-o screwed.