While some industry watchers have argued that Apple is diversifying its business too dramatically, analysts at investment research firm Piper Jaffray said Wednesday they believe the company is actually preparing to more closely focus its business and consumer electronics segments around the central core of its Mac OS X operating system.
"We expect that the new pods will be based on a modified version of Apple's operating system, OS X. Currently, Macs, the iPhone, and Apple TV run on OS X, and with these OS X-based iPods, Apple would have an entire line of consumer electronics products based on OS X," Munster wrote in a note to clients. "Instead of diversifying its business too dramatically, as some have argued, we believe Apple is focusing its business."
A third-generation iPod nano is likely to include video capabilities, a wider viewing display, and come in five new colors, the analyst said. However, he isn't expecting major advancements in storage capacity, which he believes will remain at 2GB to 8GB. He added that Apple will likely maintain its lowest price point of $149 for the new nanos.
Meanwhile, Munster said he's less certain about the specifications of a sixth-generation iPod video player, but believes there is a 70 percent likelihood Apple will finally unveil a widescreen, mutli-touch model akin to the iPhone.
"It may also have WiFi capability and the capacity could be as high as 160GB," he told clients. "Apple will likely raise the lowest iPod price point back up to $299 (from $249). The fifth-gen iPod is the longest-lasting iPod model ever; it was released nearly 2 years ago and refreshed with high capacities and a lower price last September."
Speaking more generally in his note to clients Wednesday, the Piper Jaffray analyst also emphasized his belief that Apple is entering the two strongest quarters in company history.
"With new iMacs ahead of the education buying season, we believe Apple may see upside to our estimate of 1.9 million Macs in the September quarter," he wrote. "Likewise, if Apple announces new iPods on September 5, they would be well-timed for the critical holiday shopping season, possibly providing upside to our estimate of 22 million iPods in the December quarter."
Munster maintained his "Outperform" rating on shares of Apple with a price target of $211 a share.
29 Comments
Same storage capacity? WTF really, does anyone else believe this? Hard to imagine that Apple is about to intro a 2gb nano replacement.
Same storage capacity? WTF really, does anyone else believe this? Hard to imagine that Apple is about to intro a 2gb nano replacement.
I doubt it would be the same storage. If they come out with the wide screen iPod then you need more storage for the video. Apple knows that like we do.
I'm just interested in seeing OSX on an iPod Shuffle with a screen to boot.
I'm just interested in seeing OSX on an iPod Shuffle with a screen to boot.
first time i read that i thought you meant boot from your iPod shuffle. hehe.
I think that analyst is talking out his ass. It doesn't even make sense to put OS X on an iPod right now.
I've said before that I'd like to have an EPIC Mac. Perhaps Apple is heading that way, leveraging more the operating system and less particular hardware implementations. The Mac Mini is almost there but as far as I know, doesn't give one access to the sort of digital and analogue I/O of a true EPIC. Perhaps the USB port is good enough for that though with the addition of high-speed analogue and digital boxes plugged in.