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Apple May Introduce Cheaper Services and Phone

(Web.com) July 18, 2007 -- After the raging sales of Apple's new iPhone, the multifunctional electronics mega house announces that is developing a cheaper device aimed at younger customers.

Apple shares continued their year long surge, climbing almost 3%, to another all-time high of $134.15 in Tuesday trading. In less than two weeks, Apple and its exclusive wireless partner, AT&T Inc. have sold hundreds of thousands of iPhones at $500 to $600 apiece.

Sales have been so mind blaringly swift that several stores have reported shortages or have run out of their stock of iPhones.

Although sales have indeed soared, the iPhone has come under some harsh criticism for its high price, bulcky design, fragile casing, and did I mention "High Price?" In an effort to expand its productivity into an already booming cell phone market place, Apple may introduce a cheaper version of the iPhone- the "Nano" phone.

The introduction of a "Nano phone," selling for half the price of regular iPhones, could be just the ticket to that sort of success. The new device would likely to be controlled by a scroll wheel and might have rather limited functionality, but it could substitute the high-end demand of the somewhat overpriced iPhone.

Apple currently sells three versions of the iPod Nano, including 4-gigabyte and 8-gigabyte versions that have the same amount of storage as the two iPhone models. The 4GB Nano costs $199, while the 8GB model costs $249.

If Apple's approach is successful, the company could potentially ship 30 million to 40 million units of the Nano phone in its 2008 fiscal year.

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