Morgan Stanley analysts claim Apple is at work on iPhone

Nature abhors a vacuum, so frankly we've been a bit concerned about the dearth of Apple rumors as of late, half-expecting to witness some sort of unnatural disturbance in the space-time continuum. Well thankfully Barron's Online has swooped in the fill the void (you'll have to trust us- B.O. is subscription-only), quoting two Morgan Stanley analysts who claim that Steve and Friends are hard at work on "an iPod with phone functions," which is naturally being referred to as the iPhone. Morgan's Johnny Chan, based out of Hong Kong, speculates that Apple may subcontract Taiwanese electronics manufacturer Hon Hai Precision for a role in the phone's production, while another analyst proposes that Taiwan Green Point  Enterprises may also get in on action. Obviously the details here are super-thin (as in, we just gave you all the details), but there's been so much buzz about this fabled device, that Apple's gotta be planning on putting a cell radio in something, even if it's just an iSight. [Note: The above pic is one of the many past "iPhone" concept designs, and is only being used because we don't have a nice photo of the Morgan Stanley folks.]

[Arjun @ Mar 19th 2006 1:26PM]

1st?
Is that picture real?

[aparaty cyfrowe @ Mar 19th 2006 1:27PM]

WOW iPhon looks real good :)

[Mike @ Mar 19th 2006 1:29PM]

Looks like it'll just be a ROKR with less features, battery life, but with an Apple logo.

Consumers are gonna suck it up.

[x @ Mar 19th 2006 1:29PM]

I can imagine it to be true. Didn't Bill Gates say something about eventually challenging the iPod with MS Mobile phones?

[t @ Mar 19th 2006 1:33PM]

It looks like a crappy photochop of a Sony Ericsson T6xx series phone.

Actually, if you read the article, it's even powered by Sony Ericsson. So if this is real, its another Rokr E1 part 2.

I still call it FAKE though.

[Robbie @ Mar 19th 2006 1:38PM]

Pic ain't real. Apple hasn't used that typeface to promote their product for years. Everything's Myriad now.

[nizzy1115 @ Mar 19th 2006 1:38PM]

I can't see that picture as being real at all.

I can, however, believe that they will release a phone. Hopefully it doesn't look like that though!

[jvdgraaf @ Mar 19th 2006 1:38PM]

The Phone looks indeed very similar to an Sony Ericsson T610.
I think it's not real. The clickweel however is an great option for an mobile phone. :D

[Lars Groeger @ Mar 19th 2006 1:43PM]

In this case Sony Ericcsson is so much ahead in developing a good working
and good looking Phone ...Apple will have muuuch difficulties to match up.

The only thing that is missing is valuable Materials....Too much metallized Plastic @ SE Mobiles....( The K700 is plastic trash )They should have come out with a year ago....but now with featuring the Superlame ROKR Apple would loose it guess

[electronicat @ Mar 19th 2006 1:45PM]

Apple hasn't used that font in years for its advertising. Fake... (and ugly).

[brian @ Mar 19th 2006 1:45PM]

don't know if it's relevant or not but i read that the reason that ical's default icon in the dock is because it was released on the 17th. note the ical icon is on the 10th. doesn't mean it's a fake but just something curious i noticed.

[jason @ Mar 19th 2006 1:47PM]

The image is a concept images

http://forums.macrumors.com/showpost.php?p=1176842&postcount=188

"The image is from issue one of iCreate magazine. It's a very good UK published Mac mag with minimal advertising, cover disc and really useful tutorials. It's aimed at consumers, but does occasionally provide tutorials for prosumer and pro apps.

Every issue they have a feature called "What if Apple made ..." They let their imaginations run wild coming up with a new, wished-for product and also design it. Issue one's product was the iPhone. The iPhone image basically went around the world and got them noticed - not a bad way to launch a magazine! So, technically, not a fake as they never claimed it to be real - it was more other people hoping it was real - but it's not real either."

[Maurice Avery @ Mar 19th 2006 1:49PM]

Yuck. Not another thing with the style of the iPod. The iPod is the uglest looking mp3 player on the market. Now apple has to have the uglest looking cell phone to. Apples laptops and desktops look nice but whoever designed the iPod and this but ugly looking cell phone should be fired.

[Leemo @ Mar 19th 2006 1:50PM]

Erm - that pic is really old anyways, I think the guys at Engadget were just making a point by having it there - it's not supposed to be the real deal!

Doh!

[karmaghost @ Mar 19th 2006 1:54PM]

Yeah, I would /hope/ that isn't what the phone would look like. It's damn ugly... dugly?

[sgeir @ Mar 19th 2006 2:09PM]

If thats the Iphone, then I'm dissapointed :/.

[RyanV @ Mar 19th 2006 2:10PM]

i have had a mac for years now, and i have always liked their product styling, but damn, i must say, that is one UGLY phone.

[josh @ Mar 19th 2006 2:22PM]

you people posting are IDIOTS. THE PICTURE IS NOT THE REAL IPHONE!
READ THE FREAKING ARTICLE...

[SND @ Mar 19th 2006 2:35PM]

I don't understand why Apple would make a phone. It just doesn't make a lot of sense. Sure make software for a phone, but a phone?

[Torontoguy @ Mar 19th 2006 2:38PM]

You know, there are some things that give you confirmation that you have made the right decisions in yout life. After the iMac, iPod, iTunes, iLife and NOW the iPhone...I have finally said iQuit! I have recently dumped my cell phone entirely...this possibility from Apple reassures me that I did the right thing.

[yelohbird @ Mar 19th 2006 2:38PM]

Evan, please RTFA...Johnny Chan in HK is actually from JP Morgan (not affiliated with Morgan Stanley), while Ellen Tseng from Taipei is the one from Morgan Stanley. The third analyst who speculated on Green Point is unidentified, and therefore should not be mistakenly associated with Morgan Stanley either.
I know it's not the point of the article, but it's sad to see small details like this compromise the integrity of Engadget's reporting accuracy. That, and the fact that I'm in the industry and am probably more sensitive to these i-bank names than the average Engadget reader =P

[ianion @ Mar 19th 2006 2:46PM]

i don't know if it is just that few of you people have read the actual article or not.... but it clearly states this is a past conceptual design... probably not even an inhouse design.. let alone, anything that holds water... also, of note, i find it funny that people seem to endlessly bitch about apple style... The fact that it raises awareness enough to be noticed means it has gotten part of the job done... regardless of whether you like it or not, the fact is, it created an emotional response. Jonathon Ives, designed both the iPod and pretty much all the rest of apple gear.

[Jason @ Mar 19th 2006 2:50PM]

eek, I hope they go with Nokia or something else that has good reception and sound quality for the phone guts. I'm also crossing my fingers they make a GSM and a CDMA version.

[random... @ Mar 19th 2006 2:56PM]

I first thought that fone was pretty cool looking... but on second thought, it's pretty.... fugly..... But the clickwheel is pretty cool! =D

[uzinna @ Mar 19th 2006 3:09PM]

http://www.applele.com/img/pict05_iphone_r02top.jpg
If it would look like that i'd buy one!

[Jon @ Mar 19th 2006 3:28PM]

Am I the only one that read the last sentence in this post?

[Antonio Cardenas @ Mar 19th 2006 3:38PM]

I think apple is now focusing on developing OS X and getting their computers to Intel. Specially focusing on their OS X because the Fantastic Six Vistas are (maybe/some day/not) comming.
The phone... Well, they launched a Hi-Fi box, why don't expect a phone... or two.

[B.S. @ Mar 19th 2006 3:38PM]

Jon, you're not...
That sentence was added later, after most of the comments appeared...
Waiting for the phone, then I'll comment :)

[Paul Scotto di Pomp? @ Mar 19th 2006 3:56PM]

I don't think that APPLW will be working on an iPhone until America has 3G technology everywhere and at a decent price. APPLE computers are widely used for their fantastic video conference ability through iChat, and I think that if APPLE was to build an APPLE cell phone, it would have a video conference capability.

------------------

3G is already everywhere in the world, but in America... It's strange, I know, but I really think that APPLE is waiting to get better support in order to come up with a totally innovative way of mobile communication.

I have used 3G cell phones back home, in Europe, and I have to say that it's brilliant, but nonetheless, there is so much more to do in order to make this technology user friendly ?a APPLE...

[Sam R @ Mar 19th 2006 3:59PM]

Somehow, "iPhone" sounds a bit too industrial for Apple's standards.

[atomic16 @ Mar 19th 2006 4:09PM]

What is that, oh yeh look closley at the bottom it says sony ericcson
im sorry to say this is photoshoped for now

[Jesse @ Mar 19th 2006 4:17PM]

To everyone who keeps saying this is fake, all the way down to comment #30 - you are all frickin idiots. Not only does the article say that it is just a concept, but a number of other comments have pointed this out as well. Stop being so goddamn comment-happy.

[andy @ Mar 19th 2006 4:19PM]

for everybodies information, the picture is from issue one of icreate magazine, they have concept art every month, this was for the 1st issue like a year and a half ago. mobileme is a possible name trademarked by apple

[Vision77 @ Mar 19th 2006 4:23PM]

Man it looks like a bootleg SE T610. If you look at the bottom of the phone it says Sony Ericcson. Since when do Apple and Sony work together?

[Brian B @ Mar 19th 2006 4:29PM]

#13 - Yeah Maurice, you make A LOT of sense. Whoever designed the iPod did a HORRIBLE job and should definelty be fired. They have barely sold ANY iPod's, mostly on account of the poor design. Ummmm.... oh wait, the iPod (like it or not) IS on of the most successful bits of technology we have seen in a long long time, and it is in part because of the GREAT simple design. Over 70% of the market can't be wrong!!

[Cliff @ Mar 19th 2006 5:28PM]

Doesn't look too sophisticated... But some people just have to buy anything with Apple's logo on it...

[Hans @ Mar 19th 2006 5:49PM]

i'm sure sb already mentioned this, but quite a few people need to read the last sentence. no, this is not the real damn phone. its a damn concept design.

[bufbarnaby @ Mar 19th 2006 6:24PM]

Yawn...another compressed music device...de-evolution at it`s finest. No thanks Stevie Jobs-pod !

[Martijn @ Mar 19th 2006 6:46PM]

Here is a top 5 of Apple mobile phone concepts:
http://www.freshcreation.nl/comments.php?id=143_0_1_0_C

[Fernando J. Entrena Rivas @ Mar 19th 2006 7:19PM]

I'm sure that the one on the picture is not. But also I'm sure that the iPhone is comming really soon. Maybe for April's fool...

[Scott @ Mar 19th 2006 7:39PM]

Too bad Cisco owns the rights to the word iPhone....

[ケビン @ Mar 19th 2006 8:17PM]

We got new things today, I am really excited about this. But, first... ipod sales reached 2 billion, so we bought China. Now, and I am excited about this, the iPhone.


iTunes
Mail app
Calendar
Airport Extreme and Bluetooth 2.0
Front Row w/remote
Built in i-sight camera
Apple OS X Mobile Edition
-------------------------
Sounds good to me...

[hi @ Mar 19th 2006 9:22PM]

if the little thing about SE wasn't on there i would have to say bs cause that keypad is straight out of the SE T616/610

[Lerry Liu @ Mar 19th 2006 9:31PM]

well if you think about it, and look at it closely, compare that phone to the Sony Ericsson T610, looks like its another photoshop

[James @ Mar 19th 2006 10:25PM]

say hello to iDontgiveacrap
you want a music player get an ipod or something else.
wow all those concepts look like crap.

[jef @ Mar 19th 2006 10:30PM]

given apple's strong and loyal brand, creating a vmno makes sense for apple. it will happen.. they're probably just figuring what the content and functions should be.

[bufbarnaby @ Mar 19th 2006 11:39PM]

How about the MEPOD or the always popular peapod ?

[Silver @ Mar 20th 2006 12:05AM]

Ah, the elusive yet imminent Apple cellphone. I can't wait. It will give all the Apple haters one more thing to bitch about having "no FM tuner."

[bentong @ Mar 20th 2006 3:12AM]

no thanks.
Sony Ericsson all the way!

[Eric @ Mar 20th 2006 3:26AM]

thats possibly the worst attempt at an iPhone!
its got the keypad of a SE T610 and the top of god noes what this P.O.S is.

Worst.Concept.Ever

I personally think apple would do a way better job if they designed it themselves. Not some crappy website...

Im sticking to my N91