iPhone nano seen in Apple's future

SAN FRANCISCO — Apple may be gearing up to introduce cheaper iPhone and MacBook models in 2009, possibly including a device dubbed the iPhone nano, an analyst said Wednesday.

Judging by checks with Apple suppliers, it appears the computer maker may be getting ready to introduce "a lower-cost version" of the popular iPhone, according to Craig Berger, an analyst with Friedman, Billings, Ramsey & Co.

"Some call this device the iPhone nano," Berger wrote in a research note. "Whatever one calls it, we believe this device is on its way."

Shares of Apple fell anyway, 1.1 percent on Wednesday to close at $85.35.

Berger added he's also expecting "a new and smaller version of the iPod shuffle," possibly in the middle of the first quarter and a cheaper MacBook notebook, although he noted, "We do not believe this PC will qualify as a netbook."

Berger said he doesn't expect the products to be ready in time for a rollout at the Macworld expo next week.

Berger, who contacted parts suppliers, also said that Apple made fewer iPhones in the fourth quarter than originally estimated. That shortfall will be partially offset by greater first-quarter output, he said. About 10 million phones were available for purchase in the fourth quarter, he estimates.

Analyst Roger Kay, of Endpoint Technologies Associates, said offering lower-cost products "would certainly help volume" in a time of weaker demand.

He also noted that, while it is hard to know if Berger is right about Apple's plans, the potential for information leaks at the tech giant has grown.

"Since the company began working with a wider range of suppliers, its information embargo is more difficult to keep," Kay said. "Doesn't mean this guy has the scoop, but the likelihood is greater."

Berger also wrote that Qualcomm will replace Infineon Technologies as the supplier of the baseband processor — the chip that translates radio signals into voice and data — in the new iPhone.

"Mobile-phone sales figures will continue to grow worldwide in 2009 and most of that growth will come from developing countries," said Hakim Kriout, a portfolio manager at Grigsby & Associates, a New York-based securities trading firm that owns Apple shares. "Turning the iPhone into a product line by adding another device for the lower end of the market is the next logical phase."

Jennifer Bowcock, Apple's spokeswoman for the iPhone, didn't immediately return a call or e-mail seeking comment. San Diego-based Qualcomm's Bertha Agia also didn't immediately return a phone call.

Apple now sells two versions of the iPhone, an 8-gigabyte model for $199 and a 16-gigabyte device for $299. Wal-Mart began offering the product last week, with its starting price at $197. Best Buy sells the phone for $189.99 and $289.99.

Apple said this month that Chief Executive Officer Steve Jobs won't appear at the Macworld show, fueling speculation that the company doesn't have a significant new product to offer.

Apple will probably use the event to show updated versions of its aluminum-cased iMac desktop computers and a new operating system, Brian Marshall, an analyst at Broad-point.AmTech in San Francisco, said this month.

Information from Bloomberg News is included in this report