This is why rumors are indeed just that.. RUMORS! Yesterday, an analyst from JPMorgan named Kevin Chang, released a report stating that Apple was interested in launching a smaller and cheaper version of the iPhone based on the iPod nano design for later this year. This report then stated that  such an iPhone nano could be sold in the neighborhood of $300 dollars. Well of course this report spread like wildfire on the Internet and Apple’s stock ended up $2 a share today. Now another report from JPMorgan written by a different set of analysts have declared that such a venture from Apple was highly unlikely. The report, written by Bill Shope, Elizabeth Borbolla, and Vlad Rom, claims that “a low end, subsidized phone from Apple seems unlikely in the near term.” Talk about throwing some cold water on the original report!

Of course, everything in hindsight makes sense doesn’t it? Would it make sense for Apple to release a smaller, cheaper version of the iPhone this year? It’s more likely that Apple would release a new version of the iPod with features from the iPhone than anything else. Let’s think about it for a second. If an iPhone nano were to come out later this year, it could potentially cannibalize sales from the higher end iPhone model. We all know the iPhone provides a decent profit margin for Apple. An iPhone nano would only reduce those margins so why not make sure consumers purchase the existing iPhone first? Finally, rumors of a potential iPhone nano could easily hurt present day sales of the iPhone as consumers would consider waiting on the sidelines for the new phone.

At the end of the day, Apple is still a business and they’ll want to maximize revenues and profits as much as possible with the current iPhone. Thus that’s why it’s highly unlikely an iPhone nano will come out anytime soon.

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