Saturday, August 12, 2006

iPhone: Jobs talks up Apple cell phone  


Apple Computer chief executive Steve Jobs has been boasting about his company's much-rumored iPod cell phone amongst inner circles.

One person familiar with the ongoings believes the Apple cofounder has commissioned the release of cell phone prototypes to at least two potential OEM manufacturing partners in recent months. Current designs are said to conform to Apple's integrated model and leverage its tightly-knit digital media franchises, that person added.

By now, the notion of an Apple-branded iPod cell phone has grown from rumor to expectation, fueled in part by analysts on Wall Street who have become increasingly vocal in their convictions that Apple is developing such a device.

"The company has said it is possible that a music-enabled phone could cannibalize the demand for a lower priced iPods," PiperJaffray analyst Gene Munster recently told his clients. He equates the conflict to the inclusion of digital cameras in cell phones, which did not impact demand for higher end cameras, but weighed on the lower-end market.

"While we continue to believe there is a high chance that Apple will launch an iPhone in the next 12 months, the company says that the right path for Apple is to continue to pursue devices with one primary feature and not focus on multiple functions in one device," Munster said.

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