Report: Apple plans cheaper, Nano-based phone (Reuters/CNN)

NEW YORK (Reuters) -- Apple Inc. plans to launch a cheaper version of the iPhone in the fourth quarter that could be based on the ultra-slim iPod Nano music player, according to a JP Morgan report.

Kevin Chang, a JP Morgan analyst based in Taiwan, cited people in the supply channel he did not name and an application with the U.S. Patent and Trademark office for his report dated July 8.

Apple filed a patent application document dated July 5 that refers to a multifunctional handheld device with a circular touch pad control, similar to the Nano's scroll wheel.

Apple spokeswoman Natalie Kerris declined comment.
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"We believe that iPod Nano will be converted into a phone because it's probably the only way for Apple to launch a lower end phone without severely cannibalizing iPod Nano," he said noting that the new phone could have "rather limited functionality."
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more: http://www.cnn.com/2007/TECH/ptech/07/10/apple.nanophone.reut/index.html

Wonder what John Sculley has to say about all this? (The Newton, awkwardly ahead of its time, was his baby. And the QuickTake camera, released in '93, would have been developed mostly during his tenure.)

This is sort of an odd story -- Sounds like Mr. Chang is speculating wildly.

Why couldn't it be a "phoneless" iPhone -- basically a handheld that runs OS X.

Anyway thanks for posting the story.

Refill on the tea leaves, please.

I would buy a phoneless iPhone in an instant . . .

interesting WIKI on Scully since Apple:

http://en.wikipedia.org/wiki/John_Sculley#1994.E2.80.93present:_after_Apple