JP Morgan Steps Back from iPhone Nano Prediction

Earlier this week, an analyst for JP Morgan said he'd been told by people in Apple's supply chain that this company is developing a new version of the iPhone, which he believes will be similar to the iPod Nano.

Since then, JP Morgan released a second note essentially retracting the earlier statement. This points out that the original note was based partially on information that can't be independent confirmed. It is also heavily based on speculation centered on a patent recently filed by Apple for a new user interface for a Nano-type device.

JP Morgan's follow-up note says that while it believes Apple will eventually release a less-expensive version of the iPhone, this isn't likely to happen any time soon.

3G Coming Next Year?

Although attempting to shoot down rumors of the iPhone Nano, the second note from JP Morgan adds fuel to another area where there's been much speculation: support for 3G cellular-wireless networking.

The current version of the iPhone supports EDGE, but this isn't considered a 3G standard by most people. JP Morgan predicts that Apple will release a version of this iPod/phone combo with 3G in the first half of next year, if not earlier.

It says this will likely be another high-end model, not a less expensive one as had been earlier discussed.

If this information is correct, then this device will be available in the U.S. only from AT&T, as it has a 5-year exclusive contract with Apple to offer the iPhone and all follow-up models.

Related Articles

• Apple iPhone User Review
• O2, Orange, T-Mobile Could All Distribute the iPhone in Europe

Via Barron's