‘iPhone nano’ could increase Apple’s smartphone revenue by 250%, analyst claims

By on Feb 17, 2011 at 6:14 AM
Business February 17, 2011

The recent resurgence of “iPhone nano” rumors has Wall Street analysts working overtime. They already love Apple, which has basically been printing money lately, and rumors of Cupertino cooking up a smaller, cheaper iPhone could certainly send Apple’s mobile profits even further skyward. In fact, one analyst thinks a cheap version of Apple’s iOS-powered smartphone could expand its addressable market by a whopping 600%, therefore potentially giving iPhone profits a 250% boost. Bernstein Research analyst Toni Sacconaghi thinks Apple needs either needs a cheaper iPhone or more carrier agreements in order to increase its smartphone market share — a notion that borders on the obvious. The former option, a cheaper iPhone, could be achieved by building a smaller phone with a smaller display panel. But Sacconaghi loses us entirely when he pitches another possibility that Apple might address new customers by offering an iPhone that doesn’t require a data plan. Apple has more muscle than any other cell phone maker right now, no doubt, but carriers would never sell an iPhone that didn’t help them reel in the dough on precious data plans.

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  • Anonymous

    Oh noes, what would happen if fanboys could no longer chant “Fragmentation!”?

    • Anonymous

      Who knows and who cares. I think the whole article is stupid

      “Unannounced unofficial and rumored product to increase revenues 1 billion percent!!!!111!!1″

      Derp-de-doo. I can make up things too.

      • sirpaul

        Agreed, these so-called analysts are a bunch of idiots.

    • Anonymous

      Yes, adding “iPhone Nano” to the other 3 iPhones supported in the current OS version would cause the kind of fragmentation seen in Android’sTWO-HUNDRED handsets.

      • http://www.youtube.com/watch?v=AR6HpRLyzMY Walter Sobchak

        You are just priceless!

    • Buribe91

      Well think about this

      Coding for 2 smartphones in comparison to 100 different models.

      And I’m sure they’d use the last generation equip on the smaller one to keep it in the upgrade cycle or atleast same parts slower clock speeds same feel

  • Dextosenergy

    I strongly doubt this claim of 250%…if only because 1) the is a finite number of folks that want I phones 2) If you wanted one you probably already have one of the past/current versions 3) past sales activities of free to low cost Iphones 4) Market saturation (not even addressed) 5) if Saturation is not address then possibly this is just the begging of marketing hype

    • Anonymous

      The market is completely OVER SATURATED with apple right. The market needs more DROID phones and badly. The market wants more freedom and choice which is good for the consumer.

      • Buribe91

        Apple wants to make more money not give android more legroom you commented without analyzing

  • Anonymous

    That mockup is terrible, why is there a tiny button at the bottom that even a toothpick would be too big to press?

    If they could increase their market by 600% then they would have already launched it. Also that assumes they would have no competition. Guess what there are already Android devices close to this market and the market would be flooded with smaller Android handsets if Apple started selling quite a few of these rumoured iPhone Nanos. They may expand their market but as usual with analysts the figures are pie in the sky figures.

    • Dfsdfs

      That “button” looks like a front facing camera if I were to guess.
      I laughed when I saw the device, Apple is clearly running out of ideas. BUT, they can even pump out a brick and the cult followers will buy it.

      • Majic

        Funny how people call Apple fans sheep for buying and defending their products. My question is what do you call Android fans who basically do the same thing? This is not a dig or pissing contest, just would like to know the difference.

      • Michael Scrip

        Exactly…

        When I hear “Android sells 300,000 a day…. take that Apple…”

        I think, huh?

  • Anonymous

    The main cost is the monthly carrier bill. In Hong Kong the iPhone 4 has been $0 since launch in July.

    • Jayhammy

      Interesting…$0? Tell that to the iPhone fans who alway say that iPhone 4 is never discounted and that only Android devices are BOGO.

      • Anonymous

        To be fair that is outside the US where every phone is free on contract. So the buy one get your whole family free deal we offer with all DROIDs is an American thing. So technically the iPhone fans are correct.

  • Anonymous

    Did any Wall Street analysts predict the 2008 financial meltdown?

  • Anonymous

    Honestly don’t see that much profit. I don’t see many people wanting these things. If it does become data plan less then maybe. I’d rather buy an iPod Touch and dumbphone.

  • this is still America isnt it?

    IPhone mini will definitely have WiFi or must you then use itune pc sync to get music and apps? Mobile access to the app store, isnt that how apple makes money? So unless they intend not to install carrier chips at all, how are these going to be used as phones? The iPhone or any mini version will remain internet centric devices and therefore any carrier will expect to generate internet access revenue from it. Plus little jimmy can’t charge a million things to mom’s credit card if he always has to do it from home. Very curious.

  • Max

    I’ll bet a baby Blackberry Curve would do that for RIMjob. LMAO. Oh wait..no. It wouldn’t.

  • Anonymous

    Is this the same analyst expert that predicted the huge weekend sales of iPhone at VZW??

  • Anonymous

    LOL! Apple is going to be so fragmented and more terrible than they already are. Good luck getting timely updates like I do on my DROIDS…though they are from the community they still count because everyone roots there phones.

    • Anonymous

      As much as I dislike Apple and the iPhone in general, this will not cause any fragmentation. Still one manufacturer who sends out updates through their own software (itunes) not the carriers, and the phone will use the exact same OS. Therefore, there will be only a physical difference in size.

  • Phed_Up

    There should be a dedicated comedy channel staffed by analysts!

  • Anonymous

    In other news, Analyst claims analyst predictions up 500% while analyst value expected to decline to 0.

  • KCRic

    So your beloved iPhone is threatened by Android, BGR? Thus you feel the need to come up with wild claims of “250%” all the while talking about something that so far has no viable proof of even a concept. That’s low… really low.

    You want to see my 5″ Cell Processor powered, 5000mA, Andriod phone with an Nvidia graphics card sticking out the side?

    • Anonymous

      Bgr didn’t come up with the claims.

      • KCRic

        Maybe so but hey, unlike everyone else, decided to report it. The number seems a bit cherry picked too.

  • http://twitter.com/kabkoub kabkoub

    I’m sorry, but the iPhone nano, shown in the picture above, is disgusting; and this is coming from an Apple fan. ;)

  • Migs

    BGR u should get one, ur in bed with Apple. And make sure you delete this post too like you have done on my other apple compliments you dont seem to like. for example the Iphone not crushing the Verizon network comment you made, OH and the Verizon iphone sales not meeting exectations. funny thing is i am an apple fan not a hater, infact not a hater of any OS but its pretty obvious where BGR opinions stand.

  • Steel

    I’m an Android fan, but I’d love if Apple used their clout to do 2 things:

    1) Make a phone that costs $200 w/ no contract, paving the way toward plans that operate independently on phone subsidies
    2) Make an iPhone that is a phone w/ wifi, requiring no data plans. most people would be fine w/ this option. ecept the carriers of course.

  • Anonymous

    I don’t think Android fans understand what “revenue” and it’s brother “profit” mean; all they understand is “market share.” Unfortunately, Android’s significant market share has not resulted in it taking a majority of profits, as Apple continues to take 51% of the ENTIRE mobile industry’s profits despite holding just a 4.2% overall market share.

    • http://www.youtube.com/watch?v=AR6HpRLyzMY Walter Sobchak

      You are just priceless!

  • Patty-o

    APPLE 4 LIFEEEEE!!!!!

  • Jsantana0793

    Are these the same analyst who claim that Verizon was going to make a killing off selling the Iphone, because is never happend and the sales were pretty low… Lets push ahead a sec. I love the Iphone, but to make a nano one is stupid. Take the 3GS and disount that phone… If its about the front camera for face time. Well, then sell the Iphone 4 cheaper when the Iphone 5 comes out. Who’s managing Apple when Steve is on medical leave..???

  • Anonymous

    Teenager will be all over this iPhone “nano”

  • Anonymous

    250%?? not if it looks like that mockup

  • Steve Hillshire

    I don’t think I’ve ever heard of anyone wanting a smaller smart phone. In case Jobs hasn’t noticed, his Android competition isn’t releasing tiny phones. In fact, its quite the opposite! I think the juggernaut is wobbling off course here…

  • aaronds

    Maybe they’re worried about the competition from the Palm Veer?

  • educatedshrimp

    Dunno about anyone else but I’m hoping my thumb will finally be able to reach the back button in iOS now as I’m tired of having to stretch my hand to the top right corner.

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