Apple Up on Report of Cheaper IPhone Tuesday July 10, 11:45 am ET Apple Shares Rise After Analyst Says Apple Likely to Release Cheaper IPhone in 4Q
NEW YORK (AP) -- Shares of Apple Inc. hit a new all-time high Tuesday after an analyst said a patent filed by the company suggests it will come out with a second, cheaper model of its iPhone gadget in its fourth quarter. Apple shares added $3.31, or 2.5 percent, to $133.64 in morning trading. Earlier, shares traded as high as $134.50, eclipsing a previous 52-week high of $133.34 set Friday. Cupertino, Calif.-based Apple released the iPhone on June 29. The much-anticipated hybrid gadget contains cell phone, media player and wireless Internet functions. Current iPhone models retail for $499 to $599. In a note to clients, J.P. Morgan analyst Kevin Chang said based on a patent Apple filed in November, he thinks a new iPhone is coming that will cost $300 or less. It is likely to be controlled by a scroll wheel, and might have limited functionality. He said the patent filing showed how to dial a phone number with the scroll wheel. "We believe it's a strong sign that Apple could potentially convert every iPod nano into a nano phone," he wrote, referring to the company's popular flash memory-based music player. The nano currently sells for $199 to $249, depending on the amount of included memory. The nano and Apple's shuffle iPod comprise the majority of the estimated 50 million iPods the company sells each year, Chang said. Chang said there's "a decent chance" that Apple will accept operator subsidies for a cheaper iPhone model, which could sell 30 million to 40 million units in fiscal year 2008. "The global introduction of this model should be much faster than iPhone, given the former's limited functionality and lower customization requirement," he wrote. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| CF 8 â Scorpio beta now available, easily build great internet experiences â Try it now on Labs http://www.adobe.com/cfusion/entitlement/index.cfm?e=labs_adobecf8_beta Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:238031 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
