Apple Stock Hits High on iPhone Nano Rumor

July 11th, 2007

While Microsoft is denying any plans to cut the price of its Xbox 360 video game console, Apple is tightlipped about a rumor that it will offer a lower-priced iPhone. The Apple rumor is spurring the Mac-maker’s stocks to an all-time high. Shares rose 2.5 percent to $134.50 on Tuesday with the prediction coming from a reputable source: JP Morgan.Reuters reported that Kevin Chang, a JP Morgan analyst based in Taiwan, said Apple will transform an iPod Nano into an iPhone Nano. The result would be a lower-cost model of the iPhone. This less-expensive version, Reuters reported, could be available in the fourth quarter.

Now there’s debate in the industry as to whether JP Morgan retracted Chang’s statement, which was based on insider information and an Apple patent that was published last week. Some news outlets indicated there was a retraction, while others, citing unidentified sources inside JP Morgan, said the suggestion of a retraction is erroneous. Either way, stock analysts said the story once again demonstrates the power of speculation.

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