World of Apple

Despite Apple’s Tim Cook recently downplaying rumours of an entry-level iPhone he Royal Bank of Canada is reiterating this week that Apple is readying an announcement of an entry-level model that lacks both 3G connectivity and an unlimited data plan.

The research note from analyst Mike Abramsky opened, “checks reveal further entry-level iPhone details, including launches on existing carriers [in] June [or] July with a data plan, entry-level pricing and a lower subsidy.”

Throughout the rest of the seven page report Abramsky fails to refer to any sources of this information but added that the iPhone 3G would also see a refresh featuring a new form factor, and added features.

In the chart (pictured) Abramsky breaks down the features.

The new iPhone 3G will purportedly retail for $199 and $299 for 16GB and 32GB models, respectively, after a $400 subsidy from local carriers. Features such as UMTS/HSDPA connectivity, WiFi, Bluetooth, GPS and a two-megapixel camera will remain in place, albeit the camera will gain video capabilites; instead the major upgrade for the iPhone 3G will be a new high-resolution display. The analyst states that the 3.5-inch display could be bumped to 720×480 from 480×320.

The “entry level iPhone” will feature the 480×320 3.5-inch display but to differentiate itself from the iPhone 3G the device will lose 3G connectivity, lack GPS, and include a two-megapixel camera but with no video capabilities. According to the analyst the device will sell for $99 after a $200 subsidy from carriers.

After announcing record breaking revenue in the first fiscal quarter of 2009, Peter Oppeinheimer and Tim Cook held a conference call with analysts and members of the media to answer any queries.

During the call which will be available for replay shortly the two senior executives fielded questions on most subjects.

Netbooks

When asked about a netbook priced at around $500, Cook answered, “We’re watching that space, but right now from our point of view, the products in there are principally based on hardware that’s much less powerful than we think customers want, software technology that is not good, cramped keyboards, small displays.”

Adding, “We don’t think people will be pleased with those products. It’s a category we watch, we’ve got some ideas here, but right now we think the products are inferior and will not provide an experience to customers they’re happy with.”

Apple TV

During the call and in it’s results Apple declined to give specific numbers of how many Apple TV units it had shipped but Tim Cook did disclose that sales were up 300% year-over-year. Apple still considers Apple TV a hobby but Cook said, “We will continue to invest in it because we fundamentally believe there’s something there in the future.”

Steve Jobs

The question was inevitable and Barclays Capital analyst Ben Reitzes couldn’t help himself and asked straight up how Jobs was doing. Naturally Oppenheimer repeated the current Apple mantra, “Steve is the CEO of Apple and intends to be involved in major strategic decisions”.

Cook added that Apple has a strong executive team in charge of 35,000 employees who he described as “wicked smart”. Cook went onto explain that the values of Apple are “extremely well-entrenched,”

“And frankly, we don’t settle for anything less than excellence in every group in the company, and the self-honesty to admit where we’re wrong. And I think regardless of who is in what job, those values are so embedded in this company that Apple will do extremely well. I would just reiterate that Apple is doing the best work in its history,” said Cook.

iPhone nano

In response to a question on iPhone pricing Apple COO Tim Cook replied, “We are now in over 70 countries with the iPhone and you’re correct, some of them are non-subsidized markets. Examples are, the largest is in terms of size of the market, our sales are clearly materially less in those markets than they are in the subsidized markets with contracts. We are constantly evaluating the best way to play in these markets. We know there’s a huge opportunity here, and we will make adjustments in the future there to play in a better way.”

Cook went onto talk about speculation around the iPhone nano saying, “You know us, we’re not going to play in the low-end voice phone business. That’s not who we are. That’s not why we’re here. We’ll let somebody do that, our goal is not to be the unit share leader in the phone industry. It is to build the best phone.”

Before Macworld several stories ran on World of Apple referencing the iPhone nano, although it always seemed unlikely for the device to show up at Macworld the evidence was there and further evidence and rumours now point towards a mid-2009 release.

Digitimes has posted a report from Taiwan based Economic Daily News stating that two chip manufacturers are expected to receive orders for the “low cost, entry-level iPhone nano” from Apple.

Taiwan Semiconductor Manufacturing Company and United Microelectronics Corporation are reported to be receiving the orders in March leading to a June release of the iPhone nano at the earliest.

In addition a TUAW.com tipster has sent in a screenshot which shows a device called “iPhone nano” which appeared in his iTunes Connect service which is used by App Store developers.

Finally analyst Brian Marshall for American Technology Research has written in a report that he believes the iPhone nano won’t initially be released to the North American market. The analyst is reporting that according to “industry insiders” have reported that the device is not currently being tested by AT&T in its labs. US customers may have an indefinite wait according to the analyst.

“Obviously, the best-case scenario here would be a China launch (~600mil+ wireless subscribers total in the country), but we have no definitive knowledge of this and are working on identifying the local of launch and other pertinent details,” he said.

Over the last couple of weeks case manufacturer XSKN has hinted towards cases made for an iPhone nano, despite the company previously being accurate in posting images of cases for unreleased Apple products it was widely believed that this was some kind of marketing trick.

But a second case manufacturer has also posted a link for the iPhone nano on it’s website. The link on Vaja’s website merely links to a page asking you to sign up for information about “the upcoming release of our iPhone nano cases.”

After initially hinting at the iPhone nano, case manufacturer XSKN has taken the situation one step further and posted an entire page dedicated to cases for the currently non-existent iPhone nano.

In the past XSKN has been consistent in posting accurate images of product cases ahead of the actual Apple release.

Last week rumours of an iPhone nano resurfaced after case manufacturer XSKN posted a rendering stood next to a standard iPhone. Today the same manufacturer has put references to the iPhone nano on its website.

The link on the website does not yet offer any products but XSKN has in the past revealed iPod specifications ahead of official announcements from Apple.

Currently it is unknown what the status of the iPhone nano is, if it exists at all. In addition Mac Rumors is reporting that “Apple’s initial plans for Macworld may have been delayed. So, even if an iPhone Nano was originally in the works, we’re not sure when we’d actually see one.”