Iphone Price - Cheaper iPhone reportedly on way

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By STAFF REPORTS
The Atlanta Journal-Constitution
Published on: 07/10/07

Fresh off the launch of its much-hyped iPhone, Apple may be preparing to offer a less expensive version that could be used with several wireless carriers, a telecommunications industry analyst says.

JP Morgan Chase analyst Kevin Chang said the new model could sell for less than $300, according to reports by Bloomberg News and MarketWatch. He based his speculation on patents filed by Apple and unidentified component suppliers, the reports said.

Sales of the new model, to be based on Apple's iPod Nano music player, could start by the fourth quarter, Chang said.

The new device likely would be controlled by a scroll wheel similar to those used by iPod, and it would have more limited functions and Web browsing capabilities, according to the reports.

Fewer functions would enable Apple to sell the handset to more carriers, the reports said. The iPhone, priced at $499 or $599, is currently sold only with AT&T wireless plans.

Subsidies by carriers could push the price of the smaller model to as low as $99, Chang told Bloomberg News.

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