Update issued July 11 – scroll to bottom for details
After digging through the trademark office, JP Morgan has found a patent filing that has led the whole tech industry to believe Apple will launch a smaller, less expensive iPhone later this year.
Digital Journal — I know, you just uttered the words “Holy jeez,” under your breath, and scratched your forehead in disbelief. Welcome to the world of tech, where new products are rumoured to be coming before their predecessors have had any real time to play in the market.
Keven Chang, an analyst for JP Morgan is credited for finding the documents at the U.S. Patent and Trademark Office that outline a device that sounds almost undeniably like an iPhone Nano (you can see the document online here) It was filed by Apple on November 1, 2006 but published by the patent office on July 5, 2007.
The report shows Apple could be planning to launch a cheaper version of the iPhone based on its slim iPod Nano music player.
The phone is rumoured to be scheduled for release in the fourth quarter, this year.
In a report released Monday, Chang wrote: Invention pertains to a user interface for controlling an electronic device, particularly a multifunctional electronic device that is capable of operating in multiple modes as for example a phone mode for communications and a media player mode for playing audio files, video files, and the like.
Chang also says the phone could have a scroll wheel like the iPod, and limited functionality (possibly no touch screen).
The iPhone has been on sale in the United States since June 29, and all reports indicate the phone is selling as expected (Apple has not released numbers, but analysts predict they sold as many as 500,000 units in the first weekend alone). Apple has targeted sales of 10 million units next year, giving them 1 per cent of the global cell phone market.
The current price tag will set iPhone owners back about $600 USD (depending on model), whereas the upcoming iPhone Nano is expected to cost about $300 USD or lower (some estimates suggest it could cost a mere $99 to $149).
It’s no surprise that Apple would try another version of iPhone. After all, the company saw huge success with its iPod line for the very reason that it offered a choice: big units, small units, models coming in a rainbow of colours, thin profiles and large or small storage capacities. This success (in theory at least), could easily be repeated with the iPhone.
Also, as Chang says, the less expensive iPhone Nano is needed so Apple can avoid cannibalizing the iPod Nano. But with a lower price, Chang says next year’s sales of a stripped-down iPhone could be as high as 30 to 40 million units, assuming their is no supply bottlenecks. Apple currently sells 50 million iPods per year.
The iPhone Nano will also change the business model for Apple and service providers, as mobile phone carriers could discount the phone to entice customers to sign long-term contracts.
Some analysts have suggested the more expensive iPhone will have trouble reaching the mass market because of its price point, but an iPhone Nano would easily bridge the gap, as Americans typically spend $100 or less on their mobiles.
DailyTech has also suggested the device could be an iPod with iPhone-like features. In a recent article, author Marcus Yam writes:Another possibility is that instead of iPod Nano designs heading to the iPhone, it will be iPhone technology making its way to the iPod line. Adding touchscreen functionality to the iPod may give the Apple music player a new edge without fearing lost sales to the iPhone.
Analyst Gene Munster of Piper Jaffray says, “We believe the iPhone reveals much of what the iPod will soon be… iPods with some of the touchscreen features of the iPhone should lessen the impact of cannibalization.”Like all Apple rumours, Apple will not comment on this report.
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Update, July 11, 7:20 AM (EST)
Some analysts at JP Morgan have argued against the prediction made by Chang, as they do not believe Apple will release an iPhone nano by the end of the year.A lower end iPhone is inevitable, in our view, but we believe a near-term launch would be unusual and highly risky,” the trio stated, describing Chang’s prediction as “very interesting.”
More details can be found here.
