Allegedly, one device would be a thinner, lighter, and lower-priced version of the iPhone--an iPhone Lite, if you will. While the other device would be something akin to the jumbo iPod Touch that we wrote about previously. BusinessWeek's anonymous source describes it as a "media pad that would let users listen to music, view photos, and watch high-definition videos."
I think the iPhone Lite is just a rumor to extend the AT&T deal at Apples terms. It gives AT&T the idea that Apple could walk-away at any time and join their competitor. I think Apple would just love to sell their iPhone to every cell phone company in the world but just can't due to the AT&T deal. Now AT&T will have to shell out big bucks or Apple will do just that in 2010.
However their new Netbook-like ITouch device looks really nice but I can't see how much margin they can squeeze out of the thing. I just have a hard time seeing this thing selling for more than $300 but I could be wrong.
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