JP Morgan analysts have expressed doubt about a colleague's claim that Apple is planning a cheap iPhone with a design similar to the iPod Nano.
On Tuesday JP Morgan Chase analyst Kevin Chang, based in Asia, said the new model could sell for less than US$300 in the U.S., using patents filed by Apple and unidentified component suppliers to support his claims. The iPhone sells for $500 and $600, depending on storage requirements.
But Chang's colleagues in New York have warned iPhone fans to be wary of the claims.
"One of our colleagues in Asia, Kevin Chang, published a note discussing his expectations for a low-end 'Nano' version of the iPhone," reads the new report from JP Morgan's Bill Shope, Elizabeth Borbolla and Vlad Rom. "We caution that the potential for a low-end, subsidized phone from Apple seems unlikely in the near term.
"Perhaps Apple will choose to eventually replace its iPod family with phones over time, but it could be premature to assume this will happen in volume any time soon."
The three analysts are sceptical of Chang's prediction due to his use of patent filings to predict Apple's next move, they said.