LONDON Apple Inc. (Cupertino, Calif.) is working on a second iPhone, based on the form-factor of the iPod Nano music player, according to online reports that reference a note to clients written by J.P. Morgan analyst Kevin Chang.
The iPhone Nano would be much lower cost than the iPhone and come to market in the fourth quarter of 2007, the reports said.
"We believe it's a strong sign that Apple could potentially convert every iPod Nano into a Nano phone," Market Watch quoted Chang as saying.
Chang expects the iPhone Nano to have a scroll wheel interface, limited functionality and be priced at about $300. Chang concluded that Apple could potentially ship 30 million to 40 million units of the iPhone Nano in the 2008 financial year, the report said.
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