PJ on Apple iPhone

Research-investment firm Piper Jaffray has weighed in on the possibility of an Apple-branded phone, in light of the forthcoming iTunes-compatible "Rokr" phone from Motorola. "We question Apple's motive to partner with Motorola when they themselves are a hardware manufacturer." The firm believes that if the long-term threat to iPods is a phone/MP3 combo device, then "Apple should make its own iPod phone (iPhone), turning the threat into an opportunity." At this time, the firm is "not aware that Apple has plans to come out with an Apple-branded cell phone." However, if Apple is already planning such a device, it would likely take at least a year to bring to market, Senior Research Analyst Gene Munster says.

A 200-person survey conducted by the firm suggests an 18 percent interest in an Apple branded phone with iPod capabilities. "The phone market is 13x larger than the MP3 player market and is an example of a new market that Apple could enter to capitalize on its powerful brand."

On average, the survey respondents said they would pay $255 for an Apple iPod phone.

Piper Wireless Technologies analyst Mike Walkley said he believes that Apple could enter the mobile phone market through an ODM relationship, but it will take time for the company to design products, strike deals with the wireless carriers in order to sell the products, and finally get the products approved on those networks.

by MacNN Staff