Following a prediction by an analyst at JP Morgan that Apple will release a smaller, cheaper version of the iPhone, share prices in the company hit an all-time high, at US$134.50
Following this prediction by analyst Kevin Chang, the rumour mill turned and share prices rose by 2.5pc, outdoing last Friday’s climax of US$133.24.
Chang said: “We believe that iPod Nano will be converted into a phone because it’s probably the only way for Apple to launch a lower end phone without severely cannibalizing iPod Nano.”
Although early reports claimed that JP Morgan did not agree with Chang’s assertions, the company has stood by the statement, saying that this development will be “inevitable”.
Chang said his predictions were made on the back of a patent application filed by Apple for a device with a navigation wheel similar to the iPod Nano but with multiple functions.
This smaller iPhone would retail at considerably less than the current models, priced between US$499-599, and would help Apple achieve its 1pc penetration goal in the mobile phone market.
By Marie Boran