(This entry was originally posted on Thursday, February 5th, 2009)
Apple is preparing with its next generation iPhone and people are thinking that with its next generation iPhone, Apple might try to shift its iPod users to iPhone. Analysts and business people are saying that Apple would address its iPhone market just like its iPod market. The company would provide iPhones that are smaller and comes with different sets of functions.
Tony Sacconaghi, an analyst said in his research note that the market of portable music system is shrinking because people are not finding the device very charming as there are smart phones around the corner that can fulfill the need of listening to music. Currently, the smart phone market is very limited and Apple is ruling the roster. The current Apple iPhone comes with an expensive “voice and data service plan.” Under this system, the users would have to pay more than $70 per month to use the phone. This has barred many interested buyers from buying this device. If the new iPhone comes without any data plan then Apple would be able to attract a large amount of buyers. Sacconaghi believes that with the new model iPhone, Apple not only become the top company in the smart phone industry but it will also add $7 billion revenue plus $4 billion “gross profits” per year.
Sacconaghi believes that there would be two versions of this low priced Apple iPhone- the iPhone Nano which will have a larger multi-touch screen and the iPhone Touch would be more like the iPod Touch.
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