Supply checks suggest candy-bar ‘nano’ iPhone

Analyst Shaw Wu has stated that supply chain checks indicate signs of new form factor iPhones under development, including both larger and smaller touchscreens than the iPhone 4’s current 3.5-inch screen size. According to Kaufman Bros sources, the new models could be both a new high-end addition and a new low-end model. While noting that Apple traditionally ships new iPhone models on an annual cycle, Wu speculates that the models under development could ship much sooner.

If Apple would make such a move, it could follow the strategy that it has adopted successfully with its iPod line where it has employed a 3-tier strategy addressing entry-level, mid-range, and the high-end users. With Google’s Android rapidly increasing its market share, Wu argues that such a strategy, if indeed Apple were to adopt it, could allow it to address a much wider market. This strategy, coupled with a multiple carrier approach, would position Apple to better counter Android's growth.

The supply chain checks, along with ongoing rumors of a CDMA Verizon iPhone has Wu boosting Kaufman Bros price target for Apple shares to $374 and to reiterate its current ‘buy’ rating.

By Electronista Staff

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