Analyst: Metal iPhone to sport 3.5” LCD, up to $649 price tag | iLounge News


Analyst: Metal iPhone to sport 3.5” LCD, up to $649 price tag

The latest iPhone speculation comes from Morgan Stanley’s Rebecca Runkle. The analyst said yesterday she has “high conviction” that the rumored iPhone will launch in the first half of 2007. “We expect Steve Jobs to announce the iPhone at Macworld Expo or early next year,” she wrote. Citing unnamed sources, Runkle said the iPhone will cost $599 for a 4GB model and $649 for an 8GB model. The analyst said the phone will be wider than the iPod nano but thinner than the fifth-generation iPod, and will sport a 3.5 inch LCD screen. Runkle also said the phone will have a metal casing and will be available in multiple colors including at least black, white and silver.

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$649 for a phone!?!  That can’t be right.

I think Ms. Runkle is way off on this one.

Posted by B.Mick on December 14, 2006 at 10:47 AM (CST)


Analysts aren’t really good for anything. I’d rather hear a rumor than analyst speculation any day. And by the way whatever happened to our good analyst friend Sha Wu. He never got anything right either.

Posted by JeremytheIndian on December 14, 2006 at 10:51 AM (CST)


Yes. I understand.

So their phone is going to cost as much, if not more than, their entry-level desktop computer? Excuse me for a moment.


Why is it the ‘analysts’ don’t have as much sense as the everyday schmoes who read this site?

Posted by multimoog on December 14, 2006 at 10:57 AM (CST)


oh come on.  no one wants to read someone give their half-baked thoughts on apple’s next move, especially when they give no reasoning and cite no sources (or cite “unnamed” sources, which is just as bad).

Posted by steve on December 14, 2006 at 10:58 AM (CST)


Well I think the odds of it being that expensive are better than the odds of it costing as little as a nano. Those were the predictions I found hard to believe.

Posted by urbanslaughter on December 14, 2006 at 11:05 AM (CST)


I dunno. The Treo cost $649 retain when it came out (the 650, the 700w and 700p). After a 2year contact and discounts it could be had for about $350. I see the big vendors doing the same and dropping the price down to a more manageable $300 after contract. Time will tell… personally I would rather keep my phone separate from my music, but that’s just me…

Posted by JustReboot on December 14, 2006 at 11:09 AM (CST)


I just hope it’s an iPod first and a phone second. Sort of like the video iPod. It’s an iPod WITH video. I hope the iPhone is an iPod WITH phone capabilities. But like JustReboot said, “that’s just me”.

Posted by urbanslaughter on December 14, 2006 at 11:31 AM (CST)


Never underestimate Apple’s ability to price things at a ridiculous level.

When the first iPod came out at $399, everybody scratched their heads and laughed.

Posted by ort on December 14, 2006 at 11:41 AM (CST)


The market was different when the iPod came out. A high-end music player for $400 wasn’t outrageous back in 2001, because there wasn’t anything comparable in the market.

If Apple releases a beautiful iTunes music-playing phone with a clean, easy-to-use interface, will most people think it’s worth an extra $500 over existing phones that also play MP3 files? I highly doubt it.

That would be a niche market at best, and Apple needs the economies of scale (like the iPod) to make this endeavor worthwhile.

Posted by BJ Nemeth on December 14, 2006 at 11:51 AM (CST)


I personally hope Apple one day makes a phone/pda (with or without music capabilities) so I can get rid of my piece of crap TMobile MDA and finally run Mac OS (and actually be able to sync with my computer for a change.)

Please, please, please make it happen Apple. Please? I can’t take another minute with this overpriced piece of junk.

Posted by thelottery on December 14, 2006 at 12:44 PM (CST)


People in America have a distorted view of the price of phones because of the accommodations that the American carriers in the battle of the cell phone companies. As noted, the Treo is over $600 without the cell company subsidy, and the new Pocket PC phones are over $500 with only minimal RAM in them.

Of course, unless Apple signs up with carriers, which at this point seems difficult with many opening up their own media download services, the consumer may have to absorb the cost. This will be a big impediment to the sales of the iPhone unless Apple can cut a deal (or deals) with the cellular carriers, limiting the American market where people expect artifically low-priced phones.

Posted by Benjamin Ing on December 14, 2006 at 1:44 PM (CST)


As others have mentioned, I’m surprised to see that so many people (here and elsewhere) are shocked by the potential retail price of an Apple iPhone.  Most of the high-end smartphones had an initial retail price in line with what this article predicts that the iPhone’s will be.  Time and discounts by carriers will bring that price down significantly.

That being said, I think what most people are expecting and hoping from the iPhone is a media player that can be used as a cheap phone; an iPod plus a basic, no frills phone.  So if a video iPod is $250, I think the hope is a comparable iPhone will only add $50-100 to the price.  That’s the device that will really sell and make a significant dent in the cell phone market.

Perhaps there is more than one device in the works: the basic $300, no carrier iPhone for the average person, and a $600 smartphone that will be the handheld mac that some have hoped for since the Newton.

Posted by fstop on December 14, 2006 at 2:21 PM (CST)


I see the big vendors doing the same and dropping the price down to a more manageable $300 after contract.

It’s already been reported that Apple is buying up blocks of wholesale time from Cingular, which leads to further speculation that to get an iPhone, someone has to buy it and the cellphone service directly from Apple. No other carrier may be selling an iPhone anytime soon.

As for the speculated price; the Morgan Stanley number seems outlandish if all the iPhone amounts to is a standard featured phone+music+video. But if it’s packed with features that put it into the smartphone category, then its list price is at least comparable to those introductory pricings of quite a few other smartphones that don’t wear a bitten apple on its side that have previously come to market.

Posted by flatline response on December 14, 2006 at 4:27 PM (CST)


“Most of the high-end smartphones had an initial retail price in line with what this article predicts that the iPhone’s will be.”

But…this is just a phone. That plays music. There are like a ton of other phones with the exact same purpose that are much cheaper. I think it’s ridiculous to expect anyone to pay that much for something that has the same features as a phone I could get for free with a two year contract. That said, I’ve never really understood why people feel the need to combine a phone and an MP3 player anyways.

Posted by rainking187 on December 14, 2006 at 4:30 PM (CST)


8GB of space on a phone is stupid if thats what it will cost.
If you are on a 2 week vacation and need tons of songs and videos then you will want a regular ipod. If you are talking day to day,listening to tunes on your lunch break,at the bus/train stop…walking from the parking garage to the office…after school waiting for your ride,then i would think 1-2GB would be plenty of space.

Give me a 2gig iphone for $349 retail/$199 w/ 2 year contract. Make it run on Cingulars network so I can buy it retail and pop my prepay card into it.

Otherwise no thanks. I won’t pay a dime over $350 for a phone and I don’t do contracts.

Posted by WiPod on December 15, 2006 at 2:49 AM (CST)


That’s great!

Now where’s the Gen 6 Video Ipod with the 3.5” screen?

/don’t need a new phone

Posted by JN Taylor on December 15, 2006 at 9:03 AM (CST)


Count me as nonplussed over a 8GB phone/player.  Yawn.

Now, it’s easy to see an announcement for a 100GB, 3.5” screen, 6th gen iPod.  Now THAT might be of interest.

Posted by Obadiah on December 15, 2006 at 10:01 AM (CST)


That’s not that expensive if it’s a high end phone (with camera, mp3, good OS etc.)

And, phones go way cheaper when you subscribe to a mobile phone operator…

Posted by steph on December 15, 2006 at 11:36 AM (CST)


Obadiah, nonplussed means confused or perplexed, not disinterested.

Posted by urbanslaughter on December 15, 2006 at 12:24 PM (CST)


Thanks to my friend, urbanslaughter for the schooling.  However, the Wiktionary states, “Recently nonplussed has come to mean unimpressed.”  Therefore, I am flummoxed by your post.

Posted by Obadiah on December 15, 2006 at 4:18 PM (CST)

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