Apple may be planning to launch a cheaper version of the iPhone in the fourth quarter that could be based on the ultra-slim iPod Nano music player, reports Reuters.
Kevin Chang, a JP Morgan analyst based in Taiwan, cited people in the supply channel that he did not name and an application with the U.S Patent and Trademark office for his report dated July 8.
Chang said a way to follow up the iPhone with a cheaper version would be to convert the Nano into a phone and price it at $300 or lower. The iPhone sells for $500 and $600, depending on storage space.
Because of the anticipated lower price, 2008 sales of 30 million to 40 million units “is achievable,” according to Chang.
This would be a much larger volume than is expected of the first iPhone, Apple has targeted sales of 10 million units in 2008, which would give it a 1 percent share of the global market.
In the United States, 85 percent of consumers tend to spend $100 or less on cell phones.
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