A long-distance call on an Apple phone

A juicy Apple rumor is always sure to get bloggers salivating, and this one is no exception: reports began trickling out of Taiwan this week that contract manufacturer Hon Hai, also known as Foxconn, has received an order to produce 12 million phones for Apple.

Hon Hai produces iPods for Apple and makes mobile phone components. Taiwan's Commercial Times first reported the rumor, citing unidentified industry sources, and both Apple and Hon Hai have refused to comment.

The iPhone has long been a dream of Apple fans, and the latest incarnation of the rumor has the devices being announced at MacWorld in January.

Despite the lack of any solid details about a phone, bloggers had no problems voicing their opinion about the product's technology, advertising and business strategy.

Blog community response:

"Apple will face difficulties. Carriers are the ultimate power-players in this game, and they will exert control over revenue splits and pricing. Apple may be viewed as a competitor, and that could affect its inclusion in subsidized hardware plans. Regardless, millions already pay hefty price tags for their iPods, and that willingness will likely extend into the mobile phone realm."
--Digital Music News

"One of the rather interesting marketing aspects I've read about is the idea that the iPhone won't be tied to any specific carrier. Instead, it will be sold 'unlocked,' requiring you to insert a GSM subscriber identity (SIM) card. The downside: Apple won't get any subsidies or special deals from working with the likes of Cingular or T-Mobile. The upside: such an approach opens up most of the world as the target market instead of just the US."
--Blackfriars Marketing

"Apple already knows computers. I've noticed more and more cell phones have computer-like functionality, like email, web browsing, playing music, and showing movies. Apple already knows how to do all of this stuff simply, and more."
--Webomatica

"The introduction of the unlocked iPhone will do two things - it would basically get US buyers savvy to the idea of buying full priced unlocked phones. Secondly, it is going to cause a behavior change - of buying phones instead of freebies. It won't be a mass-market phenomenon in the early stages, but eventually (as shown by iPod Nano and iPod Shuffle), Apple will bring the iPhone prices down to a mass-market price point."
--Om Malik