Apple To Convert iPod Nano To Mobile Phone In 4Q -- Analyst

JP Morgan analyst Kevin Chang issued a report saying Apple will convert the iPod Nano into a mobile phone, likely in the fourth quarter of this year. Sales of 30-40 million units in FY2008 "is achievable" according to Chang, based on current Nano and Motorola RAZR sales. Chang, who quotes unnamed supply chain sources, as well as a patent Apple recently filed with the U.S. Patent and Trademark Office, believes "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." Chang suspects the phone will go for a maximum of $300 and will have "rather limited functionality" compared to the more expensive iPhone. The phone would also be likely to be available globally much more quickly than the iPhone, according to Chang.

Sources: Reuters, MarketWatch, Apple Insider
Commentary: iPhone: A Look Inside • Apple iPhone Makes Strong Debut • Apple's iPhone: True Innovation
Stocks/ETFs to watch: Apple Computer Inc. (AAPL), AT&T Inc. (T).
Competitors: Nokia Corp. (NOK), Motorola Inc. (MOT), Ericsson ADR (ERIC), Palm Inc. (PALM), Research In Motion Ltd. (RIMM). ETFs: Internet Architecture HOLDRs (IAH), PowerShares QQQ (QQQQ), Technology Select Sector SPDR (XLK)
Conference call transcripts: Apple F2Q07 (Qtr End 3/31/07) Earnings Call Transcript

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

Comments

[ET]

Not exactly accurate. Kevin has failed to substantiate his report and although every wire service has picked up the story and printed it there's really no validity to it either way. However, the filing in reference was published to the public on July 5, 2007. The actual filing date of the application was Nov. 1, 2006. This could mean that Apple is much further along in their planning than anyone really has had a clue about.

Here is the link fo the July 5th publishing:

appft1.uspto.gov/netac...;Sect2=HITOFF&...

[charles656oio]

What is certain is that when an MP3 player enjoys a 78 percent market share in the United States, a plethora of products and content spring up just to serve its users.

ipodconverter.com