JPMorgan Downplays Korean Analyst’s “iPhone nano” Predictions

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JPMorgan Downplays Korean Analyst’s “iPhone nano” Predictions

8:01 am on July 11, 2007 | Category: Business, Mobile Devices, Cell Phones

The American headquarters of JPMorgan has dismissed the predictions of one of its own Korean analysts, Kevin Chang, who boldly claimed earlier this week that Apple would produce a cheaper “iPhone nano” cell phone product, modeled on the popular iPod nano music player, by the end of this year.

JPMorgan distanced itself from the claims on the grounds that Chang’s information is unconfirmed and seems to contradict Apple’s historical strategy of waiting until a new device becomes truly necessary for consumers.

“We believe a near-term launch would be unusual and highly risky. It took Apple over two years to launch its first low-end iPod (the iPod mini),” explained senior JPMorgan analyst, Bill Shope. “Not all consumers want a combined phone and music player, so Apple is likely to keep the iPhone and iPod as distinct business segments for as long as this makes economic sense.”

“The current nano business is solid,” the American researcher noted, “so why risk it? We struggle to understand why Apple would abandon one of its most successful product lines with a carrier-centric low-end phone. For now, it seems aggressive.”

Shope also reiterated the extreme dependence of Apple’s stock on the iPhone’s early success, and said that JPMorgan would maintain a Neutral rating on the company until it becomes clear that the iPhone is helping or hindering Apple’s bottom line.