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Monday, 24. July 2006

Apple Developing iPod Cellphone?

Apple is rumored to be developing an iPod phone, which would combine the computer giant's portable music player with a mobile phone. The phones that are available today don't "make the best music players," hints Apple exec Peter Oppenheimer. "We're not sitting around and doing nothing."

The gadget, which would combine the computer giant's popular portable music player with a mobile phone, has been rumored for months.

Apple is notoriously tight-lipped about new merchandise, but a top executive hinted earlier this week that the company is working on a mobile phone music player.

Cellphones that can play music are considered the biggest threat to Apple's dominance in the portable-music arena, though so far the products being offered by telephone companies have been disappointing.

Gadget freaks got their strongest signal that an iPod phone might be on the way when Apple filed to trademark the phrase "Mobile Me" in January.

To retain the No. 1 spot in portable music player sales, Apple needs to keep innovating. Its sales of iPods, iPod accessories and downloaded tracks from the iTunes Music Store account for 45 percent of its business.

"Apple's ability to push the envelope is well understood, meaning that it's one of the few companies that could actually create an entirely new product category," Goldman Sachs David Bailey said in a note yesterday after adding Apple shares to the firm's "buy list." "We expect Apple to break some new ground with its advanced smart-phone technology."

Source: NY Post

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