It’s iPhone rumors galore these days. The latest comes from UBS analyst Manyard Um who believes that Apple has a 4 GB iPhone in the works, citing manufacturing orders of “7 million iPhones in each of the first two calendar quarters, 5 million in the third quarter, and 4 million in the fourth quarter, all of which are seen as “relatively good numbers.”
Um stated that while a 4 GB iPhone could improve Apple’s build rates in a recession, it could also cannabilize sales of 8 GB and 16 GB iPhones which have higher profit margins. The analyst estimates that pure cannibalization could cause a loss of $0.27 pro forma per share in fiscal year 2009, but if the 4G model drove 1.5 million incremental unit sales at a 40 percent margin the loss would be offset.
This isn’t the first time a 4 GB iPhone rumor has surfaced. Before Walmart started selling the handset, it was rumored the retailer would carry a 4 GB model for $99. We now know the rumor was nothing but fluff, as Walmart carries the usual 8 GB and 16 GB models priced at $197 and $297, respectively.
It is quite notable that Um’s belief in a 4 GB iPhone coincides quite well in timing with the low-cost iPhone nano rumor. The nano will supposedly be released in June targeted at international markets.
(Image Credit: redvers)
