[Nicko]

is....coming?.....

Apple iPhones Get Call

Taiwanese contract manufacturer called on to build Apple cell phones, report says.
November 15, 2006

Apple Computer CEO Steve Jobs may actually be able to pull off a splashy iPhone announcement at Macworld by January.

The Mac maker has placed an order for 12 million iPhones to be built by a Taiwanese contract manufacturer, according to an analyst citing reports from Asia. Hon Hai Precision, whose customers include Apple, Cisco, Dell, Nokia, and Sony, has received the order, according to a Taiwan media report cited by UBS Investment Research.

‘They can’t compete against the subsidized phones.’

-Derrick Wood,

Pacific Growth Equities



“This data point is in line with our expectations that a cell phone could be discussed in January at Macworld with limited sales by February and broader distribution in spring 2007,” UBS analyst Benjamin Reitzes wrote in a research note.

The analyst said the number of cell phones under contract exceeds estimates for 2007 and that those phones would make a “significant and incremental” contribution to earnings.

However, analysts have noted that an iPhone could cannibalize iPod sales. But the move can’t be resisted. Music is increasingly moving onto cell phones.

Makers of smart phones that sport Microsoft Windows Mobile 5 are turning Windows Media into one option to turn a PDA-style phone into a music player. Meanwhile, Motorola is aligned with Apple for iTunes on cell phones. Microsoft and Nokia, among others, are eyeing new handsets.

“I think over the long term mobile music is gong to be huge,” Pacific Growth Equities analyst Derrick Wood said. “And that is playing and consuming music over your phone.”

Apple shares rose $0.23 to $85.23 in recent trading.

Apple's Outlook

For Apple, however, the business of cell phones couldn’t be any further from its own. Apple’s hardware sells for a premium because of the Mac maker’s attention to detail. That approach has yielded elegantly crafted products that have won over geeky zealots.

But the business of cell phones is littered with free phones and rebates. Cell phone makers are able to offer flashy phones with lots of bells and whistles largely because the hardware is subsidized by carrier contracts. These phones would compete against an iPhone.

“They can’t compete against the subsidized phones,” Mr. Wood said of Apple.

Still, a snazzy iPhone at Macworld could be just the thing for Apple to brush back rivals.

Microsoft began selling its Zune digital media player Tuesday, putting its first product into the market that squarely targets the iPod crowd (see Zune Players Enter iPod Market). The software behemoth has previously said that a phone version of its music player was possible (see Microsoft: Zune Phone?).


Nokia is in, too. In September the Finnish handset maker made a big push into music-playing cell phones with its Nseries (see Nokia’s Apple iPhone Wannabe).

Along with an expanded line of music phones packing cameras, the handset maker has taken the fully integrated approach made popular by iPod with iTunes, offering its own digital music service, dubbed Music Recommenders.

Contact the writer: [email protected]


:edit: ya ya I fixed it.

[kick52]

wow! thats one crap load of formatting garbage!

[Mastrap]

My Ericsson 790a comes with a 1GB media card for mp3 playback and a radio build in. It has all but replaced the iPod for the way to work. It even synchs with iTunes via a plugin.

An iPhone would be a very cool thing.

[Dark Helmet]

Originally Posted by Mastrap 

My Ericsson 790a comes with a 1GB media card for mp3 playback and a radio build in. It has all but replaced the iPod for the way to work. It even synchs with iTunes via a plugin.

An iPhone would be a very cool thing.

Ya my Sony's are taking the place of the iPod for most things also. Their MP3 phones are having really high sales so Apple better drop the ego thing and get cracking or by the time the iPhone comes out Sony and Motorola might have cornered the market.

[Kerrigan]

Apple has supposedly been working on this for so long, that it should be really well designed. I think we've been taking their high standards of design for granted, so it will be refreshing to see them release a totally new product like a phone, and to see how nice it is compared with other phones.

[Dark Helmet]

Originally Posted by Kerrigan 

Apple has supposedly been working on this for so long, that it should be really well designed. I think we've been taking their high standards of design for granted, so it will be refreshing to see them release a totally new product like a phone, and to see how nice it is compared with other phones.

True, lets just hope it doesn't come out looking as "well desgined" as the iPod Hi-Fi.

[rickey939]

It better work with Sprint!

(yeah right)

[GSixZero]

I'll be really surprised if it's not GSM (sorry rickey).

I'm less excited about having music on my phone and WAY more excited about have a phone that was designed by someone smarter than a chimp.

[ironknee]

is the iphone really the tope end of the ipod widescreen family? the ipod phone?

i'm guessing $299 to $499

[Gossamer]

to be successful in the US they're gonna have to hook up with a carrier or two.

[ironknee]

could they go voip? through their macs? just wondering

[Cipher13]

I'm interested in an iPhone, but not if it's supposed to be an iPod replacement (which it will be).

I like having my MP3 player and my phone separate. I don't want to worry about not being able to use my phone because I listened to too many songs.

It's all about the batteries, for me.

[GSixZero]

Originally Posted by ironknee 

could they go voip? through their macs? just wondering

It's possible, but even with VOIP you need someone (Skype, etc) to connect the call from the internet to the land line network when you call a land line. I wouldn't buy a VOIP phone because I don't want my phone connectivity to rely on local wifi networks. How are you supposed to make a phone call from the grocery store? VOIP would be a cool add on feature to a cellphone, but service providers don't like the idea that they'll subsidize a way for you to circumvent their service by making VOIP calls. I'm not sure who would win the battle between Apple and a service provider, but up until now, I don't think there's any US-provider-offered cell phone that has VOIP included.

I'm guessing we'll see this through Cingular (For $200 + 2 year contract) and for $300-$400 unlocked at the apple store, depending on what kind of hardware it's got inside.

[ironknee]

i see cool

[Gossamer]

Originally Posted by Cipher13 

I'm interested in an iPhone, but not if it's supposed to be an iPod replacement (which it will be).

I like having my MP3 player and my phone separate. I don't want to worry about not being able to use my phone because I listened to too many songs.

It's all about the batteries, for me.

Good point. The battery's going to have to be massive to provide both good playing time and phone standby time.

[Dark Helmet]

I don't care what it costs but I want the wide/touchscreen ipod and I want it 8 months ago!

[Mastrap]

I use my SE to listen to the radio and podcasts on my way to/from work. The battery still lasts several days of normal use.

[mitchell_pgh]

I don't they they would buy 12 million VOIP phones.

Also, I don't think they would order 12 million phones without some contracts in the US.

[mike one]

Originally Posted by Cipher13 

I like having my MP3 player and my phone separate. I don't want to worry about not being able to use my phone because I listened to too many songs.

word to that.

if it uses a sms card, has a full address book, bluetooth, and is $300 or less, i'll buy it.

[dcmacdaddy]

My current contract with Cingular is up in late January, so if they announce something at MWSF, and it is as cool as expected, I'll be buying one. I hope they have a litte light-up Apple logo on the outside of the case. That would be the coolest thing ever if you ask me.

[C.A.T.S. CEO]

Sweet!! I need a xmas present!

[Gamoe]

I'm hoping all of the focus won't be on MP3s, and that there will really be some decent PDA functionality. This should even be the comeback of the Newton... If only we were so lucky. I'm also hoping it'll be on the inexpensive to medium-cost side.

[Apple Pro Underwear]

Cingular biatches!

[turtle777]

Originally Posted by rickey939 

It better work with Sprint!

(yeah right)

Totally funny !

-t

[kmkkid]

Well, because of Apples prolonging of the iPhone, and keeping it hush hush, they've lost one potential buyer. I just bought an SE w810i, and I'm liking it a lot so far.

[turtle777]

Originally Posted by C.A.T.S. CEO 

Sweet!! I need a xmas present!

Xmas 2007, dude.

-t

[SirCastor]

I'm with Tmobile, and I'd love to have an iPhone. I'd love for it also to not be called the iPhone.
I need PDA functionality. That interfaces fully with my Mac. I've got a 6600 which interfaces pretty well, but not well enough.

[Dakar²]

Originally Posted by SirCastor 

I'd love for it also to not be called the iPhone.

Any suggestions?

[SirCastor]

Originally Posted by Dakar² 

Any suggestions?

Sadly, no. iPhone just sounds kinda dumb to me. Rather uncreative. But I can't do any better off the top of my head

[Dakar²]

It is uncreative. Its also gold compared to anything I can think-up at the moment.

Considering their TV addon product is iTV, i get the feeling iPhone has a good chance of being the actual product name.

[Zeeb]

Originally Posted by dcmacdaddy 

My current contract with Cingular is up in late January, so if they announce something at MWSF, and it is as cool as expected, I'll be buying one. I hope they have a litte light-up Apple logo on the outside of the case. That would be the coolest thing ever if you ask me.

That would be cool actually. But a glowing Apple might eat up too much battery life. In any case, I hope it comes with a reasonable calling plan. I want to leave Sprint badly.

[Salty]

My guess is they'd go for something classy like iMobile

[ironknee]

it's all about the branding...i'll stick with ipod phone

[zwiebel_]

I remember Stevie saying something like "We have some great things in store for .Mac" a few years back. Also, Apple was one of the first PC manufacturers shipping USB and FW standard on every Mac, even though peripherals were difficult to find. In the end, they jump-started the USB/FW revolution, and the rest is history.
If an iPhone-like device ever shows up, I would not be surprised if Apple made it only VOIP, tied to your .Mac account. The news of subsidized community networks (by Google and MS), and with the advent of WiMAX, I see a new industry emerging. Casualties of the war: the carriers.

[imitchellg5]

Here's the iPhone:

Courtesy www.appleinternal.com

[euchomai]

^
^
^

That is the fake spec sheet from the game MacHeist.

Nice try though...

[kmkkid]

Originally Posted by imitchellg5 

Here's the iPhone:

Courtesy www.appleinternal.com

Would be cool though.

[vmarks]

Phone operating systems are hard to get right. Ask motorola.
Phone hardware is hard to get right. Ask motorola about Rokr e1 and Ericsson pre-Sony Ericsson when they were trying for a 1-chip phone. Both moto and Ericsson had the problem of a phone that was slow to respond, even if the OS had been right.

Look at the RAZR. The OS is nasty in layout and organization - so much so that there's a whole subgroup of people who have cropped up to try and modify the thing to be usable by discerning humans.

I do hope that Apple chooses to release the long-awaited phone in January. I will very likely get one or get a Symbian device (although the v3 of S60 is a regression rather than evolution, it seems.)

Apple, for all its GUI inconsistencies, has spoiled me. I just don't wish to interact with a device that doesn't work well and attempt to do what I wish and otherwise stay out of the way. Is Apple perfect? Not by a long shot. Do they brag about inventing things that they didn't really invent? Spaces in Leopard. mmhhmm. Even with all of this hubris and chest beating and inconsistent interfaces and HIG violations, I would still use an Apple phone over many other manufacturers.

We waited from January 2000 until January 2002 for the LCD iMac to appear. Upon announcing it, Jobs said something to the effect of "we know everyone's been talking about it for the past two years, but we wanted to do it right." -- I hope that the situation is the same for an Apple communication device.

[imitchellg5]

Originally Posted by euchomai 

^
^
^

That is the fake spec sheet from the game MacHeist.

Nice try though...

hence the link to Apple Internal...

[11011001]

Oh yay! A good reason to switch from Telus. Which I hate, and slander every chance I get.

[himself]

hmm... if the Apple phone is a big hit, could it mean bad news for the non-GSM service providers (that is assuming, of course, that the iPhone will be GSM)?

[Hash]

By all means, this gonna be huge. Apple entering any market now is a huge news. Perhaps one reason is that prepare well for that. Apple will fight with Sony Ericcson and Nokia, wow. I bet Nokia will be main loser. Eventually Apple will probably offer some kind of game consoles as well, or their vision of living digital center will not be full

[willed]

The thing is, it's not like phones are crap like MP3 players were when the iPod turned up. My SonyEricsson K800i (CyberShot) has 1GB memory, 3.2MP camera, BlueTooth, good battery life and a good GUI.

And crucially, I got it for free.

Plus I get a free upgrade every year.

Sure, I would like a phone that plays nicely with iTunes, but I'm not willing to pay hundreds of pounds for that, and be stuck with a handset without a free upgrade path.

[kmkkid]

I think Apple can definitely beat SE in both the hardware/features and GUI dept.

[kmkkid]

I hope Apple uses a standard headphone jack in their iPhone I'm getting sick of everyone using non-standard connectors.

[willed]

Originally Posted by kmkkid 

I hope Apple uses a standard headphone jack in their iPhone I'm getting sick of everyone using non-standard connectors.

Yeah that's true, but I think it's because most phone headphones double as handsfree headsets, so aren't just standard headphones.

I'm sure that Apple can beat SE in the design and GUI stakes. However, I have doubts about 1) features - look at the iPod, after 5 years it still doesn't have line-in recording, microphone, (built-in) radio etc - and 2) price, as, like I say, you can get every phone for free these days with the right contract, and then get a new one every year.

[talisker]

Originally Posted by willed 

However, I have doubts about 1) features - look at the iPod, after 5 years it still doesn't have line-in recording, microphone, (built-in) radio etc - and 2) price, as, like I say, you can get every phone for free these days with the right contract, and then get a new one every year.

1) As far as I'm concerned, the simplicity of the iPod is one of its main strengths. If Apple just gave us a beautifully executed device for simply making phone calls and listening to music that would be great.

2) Presumably the price will be in line with other high-end phones, which you can get free on contract deals. So I'm sure it will be free in many cases as well.

[C.A.T.S. CEO]

Originally Posted by willed 

Yeah that's true, but I think it's because most phone headphones double as handsfree headsets, so aren't just standard headphones.

I'm sure that Apple can beat SE in the design and GUI stakes. However, I have doubts about 1) features - look at the iPod, after 5 years it still doesn't have line-in recording, microphone, (built-in) radio etc - and 2) price, as, like I say, you can get every phone for free these days with the right contract, and then get a new one every year.

The #1 part of your post sounds like a Microsoft nerd complaining about the iPod because it doesn't have all of the little nerdy gadgets. As long as something is simple enough for non-nerds to understand and have the cool factor then i will be a great product.

[PowerPc = Pwnage]

Originally Posted by imitchellg5 

Here's the iPhone:

Courtesy www.appleinternal.com

I like the idea of the earbuds for ease with driving, and how they come and work with it automatically, for ease with driving, because it is illegal iny my area to drive witha cell phone. it doesn't matter though, because no body gives a damn.

[MOTHERWELL]

I think Verizon is the best network by far, but I would bet that the iPhone is GSM.

I am willing to switch to whatever network has the iPhone.