JP Morgan analyst sends iPhone Nano enthusiasts false hopes

July 9, 2007

JP Morgan analyst sends iPhone Nano enthusiasts false hopesIf the recent patent submission for a rotary-styled clickwheel by Apple got your juices flowing about a more frugal iPhone, you’ll get a kick out of this: JP Morgan analyst Kevin Chang wholeheartedly predicted the iPod Nano being reinvented as the iPhone Nano earlier today. Is he off his rocker? Most likely, and I’ll explain why.

Chang said, “We believe that iPod Nano will be converted into a phone because it’s probably the only way for Apple to launch a lower end phone without severely cannibalizing iPod Nano.”

He theorized that Apple could look to consolidate costs now being spent on iPhone and iPod Nano production by slipping a downscaled iPhone into the sleek shell of the tiny iPod Nano.

Here’s what that theory is all FUBAR: First, it is much more likely that Apple filed the patent for an updated, rotary-styled click wheel simply as a safety fence against all comers who are constantly looking to exploit oversights in Apple’s patent protection.

Secondly, Apple does not need to “cut costs” to save money. The iPhone is selling as fast as it hits stores, and the Nano isn’t doing badly either; being that Apple is making as much as the parts of an iPhone cost on each iPhone sale, saving money can’t be foremost.

Thirdly, if Apple is profiting nearly 100% on each iPhone, how could that translate into a less expensive device? Let’s just say Apple sells each “iPhone Nano” for $300…the parts would theoretically cost $150, meaning buyers wouldn’t get anything comparable to the iPhone currently…Apple doesn’t do mediocre.

In essence, you can count on not seeing an iPhone Nano, ever. There’s nothing in it for Apple, and they wouldn’t be able to deliver anything near the quality product they are selling currently. What does the patent mean? Don’t waste your time trying to make an iPod Nano knock-off with a variable number layout, otherwise Apple’s got ya.

Full article via AppleInsider



Related Posts:

4 Responses to “JP Morgan analyst sends iPhone Nano enthusiasts false hopes”

  1. JP Morgan analyst sends iPhone Nano enthusiasts false hopes:

    [...] Visit Source No Comments, Comment or Ping [...]

  2. Mr. Gadget » Wenn Analysten dichten...:

    [...] unmittelbar auf ein konkretes Produkt Produkt schließen kann. Und so meldeten sich etliche Apple-Experten zu Wort, darunter die Podcaster von Buzz out Loud (CNET), und bezweifelten, dass Apple seine Kunden [...]

  3. Mr. Gadget » Wenn Analysten dichten...:

    [...] unmittelbar auf ein konkretes Produkt schließen kann. Und so meldeten sich etliche Apple-Experten zu Wort, darunter die Podcaster von Buzz out Loud (CNET), und bezweifelten, dass Apple seine Kunden [...]

  4. Wenn Analysten dichten… | Mr. Gadget:

    [...] unmittelbar auf ein konkretes Produkt schließen kann. Und so meldeten sich etliche Apple-Experten zu Wort, darunter die Podcaster von Buzz out Loud (CNET), und bezweifelten, dass Apple seine Kunden [...]

Leave a Reply:


Recent stories

Featured stories

RSS Technology news

RSS Windows News

RSS iPhone & Touch

RSS Mobile technology news

RSS Green tech

RSS Buying guides

RSS Gaming news

RSS Photography news

Archives

Copyright © 2012 Blorge.com NS