Apple: Look For Smaller iPhone, Larger iPod Touch

While rumors of forthcoming Apple (AAPL) products for at Macworld next week have been relatively muted this month, Friedman, Billings, Ramsey analyst Craig Berger put out a note Wednesday morning stating that his “incremental checks into the Apple supply chain” have revealed the prospect that “a lower-cost version of the iPhone is coming … possibly in mid 2Q.” Referring the the “iPhone Nano” that’s been discussed on various sites – basically a reduced-size iPhone, possibly with reduced functionality, possibly not – Berger comments that “we believe this device is on its way.” Berger thinks a smaller version of the iPod “Shuffle” may come in the first quarter. (Smaller? Really?) Berger thinks there will be a cheaper notebook computer from Apple, “although we do not beliee this PC will quality as a netbook,” he writes.

Note that Mac enthusiast/rumor site Macrumors Tuesday ran a piece quoting three anonymous sources as saying Apple will release a device similar to the iPhone/iPod Touch, but larger, in the second half of the year – perhaps a tablet- or slate-style computer with touch capabilities.

Berger raised his estimate for the ramp-down in production of iPhones in the fourth quarter, to down 53%, quarter-over-quarter, from down 48%, his estimate back at the beginning of this month. However, that means that with fewer iPhones in production this month than he thought, Berger expects only a modest drop-off in production in Q1 of 8%, versus he prior expectation of a drop-off of 25%, he writes.

Berger’s takeaway is that swings in production are lessening for Apple, and that that could lead to more stable order patterns for components, which could benefit Apple suppliers such as Intel (INTC), Marvel Technology (MRVL), LSI Logic (LSI), Nvidia (NVDA), while being “neutral” for suppliers of parts to primarily the iPhone, including Broadcom (BRCM), Marvel, Lattice Semiconductor (LLTC), National Semiconductor (NSM), Triquint (TQNT), and Skyworks Solutions (SWKS).
Berger prefers On Semiconductor (ONNN), Marvel, Microsemi (MSCC), Silicon Labs (SLAB), International Rectifier (IRF), Broadcom, Fairchild Semiconductor (FCS), and Atmel (ATML).

Apple shares Wednesday are up 94 cents, or 1%, at $87.23.

Comments

[Anthony Dad...:]

Apple has alot in store for us in 2009. Watch for at least 6 new products.

No doubt iphone nano is on its way. I bet we will have 1 new amazing product that will be a game changer.

Jan 01 10:27 AM

[mollytjm:]

a smaller iPhone? the beauty of the iPhone ...apps...games! i can see a tablet type Touch. the iPod Nano doesn't have a screen that's much smaller than the Classic...just less (a lot) memory. the beauty of the iPhone is the screen and that it fits in a pocket. i just don't see a smaller one being very appealing.

Jan 01 10:37 AM