AmTech: 2.5G & 3G iPhones

Apple is not going to abandon 2.5G technology when it reveals the 3G iPhone, writes analyst Shaw Wu of American Technology Research. While other reports have typically assumed that 3G phones will replace the current 2.5G models, Wu argues that based on supply chain checks, Apple will use June 9th's WWDC conference to announce simultaneous sales of devices running at either speed. It is predicted that the 3G phones will cost "similar to current price points," while the 2.5G phones will sell for between $50 and $100 cheaper.

Wu notes though that the possibility of carrier subsidies exists, which could drop prices even further. Media reports have hinted that AT&T could carry a 3G iPhone for as little as $200, well below the $399-499 options presently available.

Wu also notes that, according to AmTech sources, Apple is working on larger touchscreen products, which have already moved past the prototype stage. The devices are said to measure 4 and 7 inches, and represent a "hybrid between a Mac and iPod touch." There is allegedly a 50 percent chance that these could be announced at WWDC, but it is not certain if they will even see commercial release.

AmTech continues to rate Apple stock a "buy," with a $220 target.

by MacNN Staff