Filed under: Analysis / Opinion, Apple Financial, iPhone
JP Morgan retracts. Now says "No" to near term "Nano" iPhone
JP Morgan has just issued a note retracting Kevin Chang's earlier projection about a near term iPhone Nano. The new report says that the majority of Chang's assumptions appear to have come from a review of the patent that was published last week, adding that a near-term launch of an iPhone-nano product would be "unusual and highly risky". TUAW brings you the entire report in this exclusive online gallery.
Thanks Jeff
Gallery: JPMorgan Apple Retraction
Get a WordPress.com Blog
![TUAW [Cafepress]](http://www.blogsmithmedia.com/www.tuaw.com/media/tuaw-cafepress-promo.png)
Reader Comments (Page 1 of 1)
Gary Lee said 4:28PM on 7-10-2007
i KNEW IT . . . . those financial firms are just trying to mess with the market too much . . . i think they're finally learning how much influence they can have with the help of us Apple Fanatics!
Reply
William Vaughn said 4:58PM on 7-10-2007
They didn't "retract". Its one analyst having a different opinion than his colleague and making that difference public in his research note.
Reply
Aaron said 6:02PM on 7-10-2007
I can't believe it took me this long to figure it all out. When CEOs of other head companies laughed in Apple's face about entering the phone market they had no idea what they were capable of.
Now, it is very well possible for Apple to take a good chunk of cell phone market share within the next few years. How? With the iPod. The iPhone was created as a trojan horse for the market. The entering product that combines the companies best product, a true iPod, with a revolutionary phone. But it came at the steep $599. How do you get the iPhone into other people's hands? Simple, it already is in their hand.
Apple holds 60% market share of the DAP market. Apple just recently patented an iPod nano build with rotary dialing using the click wheel. Apple plans to install phone hardware and software into their iPods so that people who purchase the players will have the choice of bringing the phone into cellular service.
But what about the other necessary phone applications? Web, camera, SMS, the usual. Well, it's all set in place also. At a company meeting last month, Steve Jobs said himself that they were already creating iPods that run OSX, the company's computer operating system. With the OS, the iPod could run all the applications that the iPhone does.
This is just a theory, however, it does seem highly likely that the new iPods a couple years from now will come prebuilt with phone capabilities. This is Jobs' vision, to not only take over the DAP market, but also the cellular market at the same time.
Reply
James Donevan said 5:19PM on 7-10-2007
"They didn't "retract". Its one analyst having a different opinion than his colleague and making that difference public in his research note."
Right. One firm's financial investment analysts always contradict one another publicly. It's how they build market and client credibility. Nothing unusual here.
Reply
Jeff M said 5:28PM on 7-10-2007
This analyst is from the same firm. Both are from JP Morgan I believe.
Reply
AJ Vaynerchuk said 5:35PM on 7-10-2007
I still say an iPhone nano is coming. There is too much branding behind the name nano! If they come out with a cheaper smaller version of the iPhone, the name Nano would make the product sleeker, and more desirable. It would be a marketing and business mistake to not come out with a iPhone nano in my opinion.
-----------------------
AJ Vaynerchuk
Check out my iPhone link blog - http://www.ajvaynerchuk.com/iphone
optimized and fitted for reading on your iPhone
Reply
Billy K said 5:51PM on 7-10-2007
Duh.
Reply
Big John said 6:00PM on 7-10-2007
Did anyone check the volume of AAPL today?
Reply
Bill DAlessandro said 6:31PM on 7-10-2007
I'm pretty sure you're not allowed to republish the JPM report like that...
Reply
Wally said 6:44PM on 7-10-2007
"Did anyone check the volume of AAPL today?"
About 15% higher than usual...nothing extraordinary.
Reply
pac mro said 7:04PM on 7-10-2007
you are over digging all of your mediocre (at best) articles about your current obsession.
Reply
Kenneth Hartog said 7:16PM on 7-10-2007
These guys think the know everything about everything. Obviously Apple will eventually come out with a different, smaller model. Will it be this year, next year? I suspect within a year, but your guess is as good as mine. I published the following post in Google and Yahoo Finance. See if anybody has an opinion on it.
What people fail to realize is that Apple probably, in my opinion,
gets a share of the AT&T revenue. If you recall, Verizon did not want
to do the deal with Apple. I am pretty sure that Apple Stores get a
share of the revenue when a customer switches over just as your local
Cellular store gets paid when they get a customer for AT&T. I suspect
the payment is around $300 per person plus some type of on-going share
of revenues but I have no real basis for that number. I think I heard
once that a store gets around $250 to sign a customer to a new
contract.
Why else would Apple go with an exclusive provider? If they are not
getting more money, they would make it for any provider?
As a side note, I own AAPL shares and options.
I followed it with this post:
Therefore, if you take 10 million as the number of sales by the end of
2008, which seems almost conservative now, multiply that by $300, you
get an extra $3 billion in earnings that nobody is talking about. I am
a HUGE aapl bull.
My further analysis is:
If somebody puts a 40X multiple on those earnings, that more than doubles AAPL market value. I don;t expect it to double in price, but I do expect a HUGE move to the upside.
Once again, I own AAPL shares and Calls so my opinion might be biased, but that is my thinking.
Reply
FrankMcBilboWinker said 7:33PM on 7-10-2007
The heart of all iPhones is a nano powered by the blood of a young indian child.
Reply
JR said 9:00PM on 7-10-2007
A phone the size of a ipod nano would be too small and not user friendly... I'm reminded of the joke youtube ipod "flea" commercial at...
http://www.youtube.com/watch?v=qRt3Yaups1c
Reply
Mark said 10:21PM on 7-10-2007
Oh, please. Just filing a patent application does not indicate anything at all. It's just a motion for further intent.
Mark Rosenberg
Patent Consultant
Patentclaim.com, protectors of patent infringement
Reply