Come this summer, Apple is expected to dip its toe in the entry level market for its popular iPhone, according to a report by RBC Capital Markets analyst Mike Abramsky.
(Credit:
Apple)
Apple is expected to debut a $99 iPhone, as well as an iPhone 3G with updated performance, sometime in June or July, according to Abramsky's research note on Tuesday.
Abramsky, in his report, states:
Checks reveal further entry-level iPhone details, including launches on existing carriers June/July with a data plan, entry-level pricing and a lower subsidy. Also expected is a 3G iPhone performance upgrade (performance, features, form factor).
An entry level iPhone could increase Apple's overall iPhone unit sales by 25 percent to 69 percent and bump up its slice of the smartphone market from an estimated 12 percent to 14 percent to 19 percent, the report notes.
But it could come at a price.
Apple could find itself cannibalizing its iPhones/iPod business. For example, Apple would need to sell three $99 iPhones to replace the gross profits of one 3G iPhone, Abramsky notes in his report. And it could also create a situation where Apple would need to lower its iPod pricing to sustain the momentum with its media player since the iPhone also offers such capability.
... Read MoreApple has reached a $22.5 million settlement agreement in the class action iPod Nano scratch lawsuit and potential claimants began receiving settlement notices this week, according to the plaintiffs attorney.
The lawsuit, filed in October 2005 in a California Superior Court in Los Angeles County, alleges Apple's iPod Nano is prone to scratches and its alleged defects were not disclosed by the company.
A $22.5 million cash settlement agreement was reached in late October and a court has preliminarily approved the agreement, said the plaintiffs attorney. But it wasn't until this week that notices of the settlement agreement began going out to the potential pool of claimants, estimated to be a few million people.
A court hearing is scheduled for April 28 for final court approval on the settlement agreement.
Under the settlement agreement, potential claimants must have purchased an iPod Nano that was subject to scratches that affected the enjoyment of using the media player device, or impaired its operation.
Users who opt to file a claim may be eligible to collect one of two types of payments.
Tier one payments of $25 per iPod Nano purchased, may be distributed to claimants who did not receive a free slip case when they originally purchased their iPod Nano.
Tier two payments of $15 may be distributed to users who received a free slip case with their original iPod Nano purchase.
Those payment figures, however, may shift in one direction or the other, depending on how many users file a claim.
If there are additional funds leftover, after all tier one and two users file a claim, then the remainder will be distributed to those claimants--but that additional payout will be capped at 150 percent of the type of tier they filed under. And any money left in the fund after those additional payouts will be award to charities.
But if the number of claimants outstrips the $22.5 million fund, then the payouts will be reduced on a prorated basis.
Apple declined to comment on the settlement agreement.
However, on the lawsuit Web site, Apple denies all allegations in the lawsuit and in the class action, noting it is "entering into this settlement to avoid burdensome and costly litigation. The settlement is not an admission of wrongdoing or an indication that any law was violated."
Apple has issued a critical security update for QuickTime media player, aimed at resolving vulnerabilities that could potentially allow a malicious attacker to take control of a person's computer, according to an Apple advisory released this week.
People running QuickTime 7 for Windows and for Mac OS X, are affected, as well as those who are using Mac OS X 10.4 or Mac OS X 10.5, according to Apple.
Apple is advising people to update to QuickTime 7.6 for Windows, QuickTime 7.6 for Leopard, or QuickTime 7.6 for Tiger.
The update seeks to address QuickTime security flaws that could potentially allow a malicious attacker to launch a buffer overflow and execute arbitrary code on a user's system.
The attack could potentially occur via a maliciously crafted movie file, AVI movie file, QTVR movie file, or an RTSP URL, according to Apple.
Security researcher Secunia, in an advisory released Thursday, noted the vulnerabilities are considered "highly critical."
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