Marvell Technology Inc (MRVL)

[Lakers_w]

Rumors of second-generation Apple iPhone continue to surface
Emily Chuang, DIGITIMES, Taipei [Tuesday 17 July 2007]
http://www.digitimes.com/displays/a20070716VL200.html

Speculation about whether Apple will introduce a cost-down version of its iPhone continues to arise in the Chinese-language media, with a recent report in the Chinese-language Commercial Times newspaper indicating that Taiwan-based Wintek has gained touch screen panel orders from Apple for its second-generation iPhone.

The report claims that the new iPhone from Apple will begin shipping in September with prices ranging from US$249-299. The paper added that Apple recently visited Wintek to deliver instructions on manufacturing and the company has begun test production in small volumes.

Other Chinese-language media reports have listed Quanta Computer as the possible manufacturer of the second-generation device. Quanta has denied that report and Wintek has declined to comment, citing customers confidentiality.

JP Morgan has also contributed to the speculation, issuing a report earlier this month discussing the possibility of a low-end Nano version of the iPhone in the near term, with the financial firm basing its forecast on channel checks and a public patent filing.

However, a different team within JP Morgan followed up with a report of its own that stated it thinks it unlikely Apple will release a low-end Nano version of the iPhone in the near term. The report concluded that although a lower-end iPhone is inevitable, a near-term launch would be unusual and highly risky. JP Morgan now officially believes that the next iPhone iteration will be a 3G phone.

Concerning Digitimes’ own channel reporting, at this point there has been no news concerning a second-generation iPhone, but Apple remains active within Taiwan’s supply chain.

On July 11, Digitimes reported that Wintek will be the touch panel supplier of Apple's new iPod video, according to sources at upstream suppliers. The sources also pointed out that Wintek will begin shipping capacitive touch screen panels in the second half of 2007. The touch panel used for new iPod will be less complicated than that for Apple current iPhone, added the sources.

Quanta is also aggressively seeking iPhone orders from Apple, according to Quanta executives. However, a recent Digitimes report noted Quanta, along with Inventec and Foxconn Electronics (the registered trade name of Hon Hai Precision Industry) are all bidding for the Asian version of the iPhone, not the Nano version. Quanta has already been awarded some orders for the European version of the iPhone, according to a Goldman Sachs report.

Apple has not officially announced any plans for a new or next generation iPhone. Apple's iPhone became available in a 4GB model for US$499 and an 8GB model for US$599 on June 29 in the US market. It will be available in Europe later this year and in Asia in 2008, according to the company.