July 9, 2007 - Little more than a week has passed since Apple's iPhone launched rather spectacularly on weekend sales estimated at more than 700,000 units, yet word is already slipping out that a follow up model is in the works, and may be launching sooner than anyone expected. JP Morgan analyst Kevin Chang today put out the word that, according to unnamed sources in Apple's manufacturing supply chain and a patent application filed on July 5th, a smaller, cheaper iPhone based upon the iPod nano is well on its way to production.
The patent application suggests the iPhone-nano will employ a traditional Click Wheel instead of the iPhone's multi-touch interface, so as not to cannibalize sales of the higher-end model. JP Morgan expects Apple to launch this lower-end model for less than $300 to attract the particularly price-conscious American mass-market. Most interesting is JP Morgan's speculation the iPhone-nano will launch before the end of 2007, which is somewhat earlier than most expected to see an iPhone follow-up.
Apple has declined requests for comment, and official word from the company is highly unlikely until much later in the year. Is an iPhone an iPhone without a sexy multi-touch interface? Will a basic phone and iPod amalgam at a lower price be enough to entice customers not willing to shell out for the more advanced model? If JP Morgan is correct, we shall see rather soon.
