AAPL Stock: 118.03 ( -0.85 )

Printed from

Confusion over low-cost iPhone by analyst

updated 10:50 am EDT, Wed July 11, 2007

Low-cost iPhone confusion

Reseach firm JP Morgan yesterday made headlines when a Taiwan analyst announced his prediction that Apple would unveil a smaller iPhone taking after the company's top-selling iPod nano, but the firm's U.S. headquarters has released a second report with lower expectations for the Cupertino-based company. Taiwan-based JP Morgan analyst Kevin Chang yesterday predicted that a $300 iPhone will ship before the end of 2007, but senior analyst Bill Shope from the firm's U.S. head office says that Chang's sources aren't corroborated and that his prediction would contradict Apple's historical approach of waiting until a new device becomes necessary for the market, according to AppleInsider.

"We believe a near-term launch would be unusual and highly risky," said Shope. "It took Apple over two years to launch its first low-end iPod (the iPod mini). Not all consumers want a combined phone and music player, so Apple is likely to keep the iPhone and iPod as distinct business segments for as long as this makes economic sense."

The analyst also issued a warning to investors about basing estimates on a single patent filing, reminding industry watchers that many of Apple's patents rarely make their way into shipping products.

Shope considers Apple's stock price volatile due to the extensive dependence on the iPhone's launch success, and is holding a neutral share rating until the air clears on whether the iPhone is helping or harming Apple's bottom line.

by MacNN Staff




  1. hayesk

    Joined: Dec 1969


    Just rumors

    I can't believe how much press this rumor has gotten. What is Apple going to take out of the iPhone that will magically reduce the price to $300? The touch screen doesn't cost that much. It doesn't have an 80GB hard disk that costs a couple hundred bucks.

  1. mmmdoughnuts

    Joined: Dec 1969



    Hello right hand, meet left hand...

  1. danviento

    Joined: Dec 1969


    Once again

    MacNN disappoints as falling back into the purely speculative rumor mill scheme.

  1. Grrr

    Joined: Dec 1969



    I agree.. Yet more analysts cr@p. Its become quite a theme for Macnn and its sister sites these days. Can anyone suggest some good alternatives? Now that this place is going to the dump..

  1. bigpoppa206

    Joined: Dec 1969



    go with flash memory as opposed to hard drives? Same idea they use on iPods.

Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented