iPod Phone Release Seen As Golden Opportunity for Apple

American Technology Research analyst Shaw Wu believes Apple could sell ten million iPod phones within a year.

In a note to clients, Wu reflects on last week's disclosure of an Apple patent filing that relates to a multi-function device with mobile phone, PDA and iPod features.

"While this is a broad patent application covering a wide variety of areas, we believe it represents the fundamental basis and technology behind Apple's mobile phone efforts," he wrote in a research note.

He predicts the iPod phone will take the form factor of the popular "candy bar"."Should Apple gain 1 per cent share in a billion unit market, we believe that could amount to a $2 billion opportunity, assuming around ten million units at a $200 average selling price (similar to its current iPod), but not including potential services and accessories revenue."