Possible Delay in Launch of Faster iPhone

Apple Inc. (AAPL) may not launch a faster iPhone until the spring, according to RBC Capital Markets analyst Mike Abramsky. Instead, the company will concentrate on expanding the device into Europe this quarter and promote the iPhone’s wi-fi capability as its high-speed Internet connection, downplaying its connectivity to slower cellular networks.

The strategy puts Apple in a good position to meet, or exceed its iPhone sales targets, Mr. Abramsky wrote in a note to clients. Last week, Apple said it would sell 10 million units by the end of 2008.

As reported, the company’s primary negotiation objectives with European carriers appear to be focused on securing affordable data service plans and control over pricing and side-loading of software applications onto the phone, Mr. Abramsky wrote. Apple is looking to assure that customers have the “entire solution at right value.”

The company is also likely to differentiate iPhones through pricing and memory capacity, similar to its strategy with iPod music players, so a lower-priced device at US$349 to US$399 should arrive by the end of this year, or early next year.

Apple is also optimistic about the potential software applications that will be designed for the iPhone, which could be widgets or social networking features. The company says “the sky is the limit” for such applications.

Mr. Abramsky reiterated his “outperform” rating on Apple shares, with a 12-month price target of US$175.00.

AAPL 1-yr chart:

Comments

[Julian Ivan...:]

How can there be a "delay" to a (3G) product as-yet unannounced? Apple hasn't even begun rolling out the existing iPhone outside of the US yet...

2007 Aug 01 06:51 AM

[Dan Poarch:]

I have a 3G AT&T phone and the coverage is spotty at best in the Balto/DC area. Until 3G goes up on a lot more towers it's useless to wait for.

2007 Aug 01 09:09 AM

[East Coast:]

For you that is. I have a 3G Blackjack in the Philadelphia and have solid coverage in the area, as well as an hour north on my commute. As I'm sure you know, the difference between 3G and Edge is significant, so the addition of 3G to the iPhone is win-win...unless it is a black hole for battery life, like it is on the Blackjack

2007 Aug 01 10:33 AM

[Socrates' Dog:]

I agree with Tommo (and I seem to recall saying that before). And I dare say that misleading headlines like this look very suspicious to me, like attempts to manipulate the market. Someone feeling as though they missed a window, trying to pick up a little Apple stock on the cheap today? Just a natural suspicion raised by but one more clearly misleading headline on Apple.

2007 Aug 01 11:21 AM

[Socrates' Dog:]

Have a look at the following (good) article spelling out the dramatic effects that have resulted from the recent and ever flimsy gossip regarding the cut back. Again, such gossip makes one suspicious. . .

ce.seekingalpha.com/ar...

2007 Aug 01 11:37 AM

[brad:]

The title of this article should be "More Speculation on Apple"

I wish journalist and editors would use some common sense when choosing titles for their articles.

2007 Aug 05 04:15 PM