Is It Now Or Never For The iPhone Nano?

Is It Now Or Never For The iPhone Nano?

Like two sharks fighting over the carcass of a dying whale, Apple and Android want a piece of Nokia’s huge (but shrinking) market share. To do so, some suggest the tech giant needs to unveil an inexpensive handset…. the iPhone Nano.

The time to unveil an inexpensive iPhone – one without a data plan or carrier contract – is now. Analyst firms, such as Gartner, believe Nokia could turn around its market share decline when the company fully moves from Symbian to Microsoft’s Windows Phone platform. Also pressing is Android’s growing market share – now at nearly one-third of all mobile devices.

Apple is already receptive to the idea of a less expensive iPhone. Although the company has one of the highest revenue pictures in the industry, Chief Operating Officer Time Cook earlier this year told Bernstein Research analyst Toni Sacconaghi he wants to change Apple’s image of being “just for the rich.”

We recently wrote about Avian Securities’ belief the iPhone nano will appear in 2012. The device was described as “streaming-only.” This fits in with Apple’s recent moves to solidify its iCloud service, since the iPhone Nano would be devoid of memory, relying almost totally on cloud-based storage and streaming. Earlier this year, the Wall Street Journal, financial news service Bloomberg and tech blog TechCrunch all reported the iPhone Nano was in the works.

The idea reinforces Apple’s desire to promote a mobile ecosystem where various App Stores link a growing web of mobile devices. Gartner already supports such a vision as replacing the mobile landscape. An iPhone nano costing about the same as an iPod touch and free of carrier restrictions would operate like the iPad Wi-Fi, intimately tied to Apple’s core software distribution.

However, there is not limitless time to consider the notion. Google undoubtedly is considering the same path from its Mountain View, Calif. headquarters. Such a step would further cement its vision as the Apple alternative.

  • Eric

     How could you have a phone “without a data plan” that “would be devoid of memory, relying almost totally on cloud-based storage and streaming?”

  • John Neumann

     Sounds like a good idea. I’m wondering if Apple has the capacity to introduce another line of touchscreen devices and with today’s news from Foxconn, if they will ever keep up with demand for any of them. 

  • poppa1138

    why would Apple bring out a iphone nano,it might harm sales of the already popular iphone4.

  • Stephen M Walls

     This is stupid when there is a $49 iPhone 3GS for sale.

  • aardman

    No it is not, because some people don’t want to trade two extremities for a data contract.

  • aardman

     Give me a combined feature phone and iPod (not Touch) in one sleek device than I finally have a phone that is desirable enough to make me part with my ancient Motorola Razr. 

  • MacGoo

     I’d actually like a product that would basically be an iPod Touch with a phone built in. I have more than a little bit of a problem paying for so many data plans, when I’m generally in range of a wifi signal 90% of the time. One family member could get an iPhone, we’d jailbreak that and enable wifi tethering, and then we’d get iPhone nanos for the rest of the family…sounds good to me!

  • Carlos Rincon Eckardt

    The notion of an iPhone Nano is ludicrous, and it goes against everything that Apple has been campaigning ever since the introduction of the original iPhone in 2007, and besides, there’s already a less expensive iPhone available on Apple’s product line, the 8GB 3GS… what they really need to do in the U.S. at least, is to make this model available on prepaid or unlocked form without a contract at an attractive price point!

  • prof_peabody

    I agree. If Apple makes a “nano” it would only make sense if it was a feature phone and didn’t need data at all.  

  • prof_peabody

    “An iPod touch with a phone built in…” is an iPhone.  

    Just get an iPhone without a data plan.  

  • cheesy11

    the iphone nano, or in other case the cheap mans iphone, it will lack so much that the owner will be forced to buy a proper iphone thats the marketing strategy

  • Marc

    “Android [is] now at nearly one-third of all mobile devices.”

    Wrong!

    The ENTIRE smartphone market is only 27% of all phones sold, and Android is a fraction of that according to Asymco:
    http://www.asymco.com/2011/05/

    Also, why don’t you cite your sources?

  • Ruiner

    Wow… Just… Woooow… <:I

    *I need to save this for future laughs. This is getting printed and posted on my physical wall. With Peabody’s reply!

  • Ruiner

    Wow… Just… Woooow… <:I

    *I need to save this for future laughs. This is getting printed and posted on my physical wall. With Peabody’s reply!

  • Ruiner

    What I want from an iPhone Nano? A phone… And only a phone… A small one with a touch screen. I don’t need all the extra crap like storage and games and music and… Blah… I just want a tiny phone for travel that works easily with texting and calling.

  • jnjnjn3

    Size and price isn’t necessarily connected. Apples iPhone for example is about twice the price it should be, as is demonstrated by the iPod touch (an iPhone adds a gps/gsm module of about $19) and should cost about $300. But you can buy a simlock free version for €600 or more from the Apple store.
    So the price should go down significantly and this in turn will create a much bigger market for the iPhone in China and the rest of the world. It will also mean that people will buy the phone directly form Apple, without an expensive contract because they don’t need to be subsidized by a telephone company to be able to buy an iPhone.
    A smaller fully functional iPhone on the other hand would probably cost about the same as the normal iPhone and could attract a lot of buyers because they need (or like) a smaller phone.

    J.

  • José Berumen Dávila

     I LIKE THE IDEA, ACTUALLY I THOUGH THE NEXT GENERATION OF IPHONE WILL BE THE NANO INSTEAD OF THE 5… I LIKE IT VERY MUCH… CAUSE IT PISSES ME OFF WHEN IM CARRYING MY IPHONE ON MY JEAN, IS HUGE N I GOTTA TAKE CARE OF IT WHILE IM SEATED OR  GOING TO SEAT !!!!! NO CARRIER CONTRACT, CHEAPER, WHAT ELSE CAN I ASK????? DO IT APPLE! DONT THINK IT TWICE !!!!!!! LIKE Toni Sacconaghi SAYS…….

    Change Apple’s image of being “just for the rich.” REMEMBER THAT GOOGLE IS GROWING SOOOOOOOOU FAST!!!! GOOD LUCK, I´LL BE WAITING THE NANO TO BUY IT OK?

  • John Marshall

    No thanks, I’ll wait for the iPhone Shuffle.

    http://www.youtube.com/watch?v

  • nike air max

    You’ve got a really excellent ” rel=”nofollow”>air max 24 7 maintain posting new stuff.

  • yMikey

    size does matter.
    http://www.yMikey.com

  • Matthew Geyster

    100% rumor mill

  • sarakk3

    The benefit of eating apple
    http://www.articles9.net/2011/

  • Ryan Thompson

    Nobody cares about those people.   

  • Ryan Thompson

    A  product “Should be” as expensive as what consumers will pay.  You’re confusing “could be” with “shoud be”

  • Hayden

    I’ve been waiting for Apple to do this. I know so many people who would jump on board and buy the nano. Everyone wants an iPhone. The turnoff is the data plan.. If Apple wants to get away from the stereotype of only “being for the rich” than this would be perfect.

  • Lukepietrobon

    The 3GS is a piece of shit.. Seriously would you go back to that? This is apple doing what apple have always done. Releasing prototypes.. They’ve pretty much sorted the iphone with the iphone four and now they will release something cheap to corner the half of the market who can’t afford one already. It’s what google tried to do and failed at.
    Also cloud hard drives are stupid, if it’s raining my phones memory fails and I have no ones numbers? Sounds great.

  • Ljlkl

    Yes but my 3GS used to randomly shock me.. awesome apple

  • Julia Donley

    I’m sick and tired of these huge smartphones. If I wanted to carry a brick around I would go back to the 80s. iPhone Nano is brilliant – especially with the latest news on iCloud.

    I don’t need a bunch of useless apps to take up space on my phone. Nor do I need to carry every song I own on a phone – ridiculous. My iPod is permanently installed in my car. I only use a shuffle at the gym and I use my iPad for everything else.

    Apple – please please make a good small phone to connect to the iCloud.

About the author

Ed SutherlandEd Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

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