iPod Nano Phone (cbs marketwatch)


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Apr 25, 2004
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Apple to launch cheaper, iPod Nano phone: analyst

By Aude Lagorce
Last Update: 7:11 AM ET Jul 10, 2007

AAPL is coming out with a second phone, much cheaper than the iphone and based on the iPod Nano, in the fourth quarter of the year, J.P. Morgan analyst Kevin Chang said in a note to clients. Based on a patent Apple filed with the U.S. Patent and Trademark Office, Chang believes the phone is likely to be controlled by a scroll wheel and might have rather limited functionality. "We believe it's a strong sign that Apple could potentially convert every iPod Nano into a Nano phone," Chang wrote. He believes such a move is the only way for Apple to launch a lower-end phone without severely cannibalizing sales of its iPod Nano. Chang expects the phone to be priced at around $300 so it clearly belongs to a different segment than the more expensive iPhone. Finally the broker said he believes there's a strong chance that Apple will accept subsidy from an operator for this lower-end model and that given its limited functionality and lower customization requirement, its global introduction should happen much faster than that of the iPhone. Chang concluded that Apple could potentially ship 30 million to 40 million units of the "Nano phone" in fiscal 2008, taking iPod and Motorola's RAZR annual shipments as a reference.

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