Apple iPhone mock-up
In two possibly related stories, more Apple iPhone rumours have emerged at the same time that Nokia has threatened to kill off the makers of mobile music devices and video cameras. Back in 2000, Nokia predicted the death of the photo industry. Since then, long established camera manufacturers such as Agfa and Konica-Minolta have pulled out of the camera business, while Nokia sells over 100 million cameraphones a year, making it the world’s largest camera manufacturer.

Now, Nokia’s Anssi Vanjoki, head of the multimedia unit at the world’s largest mobile phone maker, is warning that the same will happen to makers of MP3 devices (Nokia already sells 40 million MP3-equipped mobile phones a year) and even video cameras, as mobile phones become ever more smarter. In other words, the iPod’s days are numbered, and if Apple wants to continue competing in that market, it must release an iPhone and soon.

Speaking of which, what of those Apple iPhone rumours?….

[Source: PCMag, Engadget, SmartHouse]

Apple iPhone Rumours

Apple iPhone rumours have been particularly abundant recently, and Morgan Stanley have been doing their bit to stoke up the hype. In a recent report, they believe an “iPhone with possible VMO model could launch later this year.” More intriguingly, Taiwanese electronics company BenQ have let slip that “Apple procurement executives have been talking to various Taiwanese phone makers during the past few months in an effort to cut a manufacturing deal on an iPod Phone.”

Taiwanese intrigue

A BenQ executive went on to claim that “An iPod phone is definitely coming. BenQ will not be making it as we are in competition with Apple; however several of our suppliers have been approached to manufacture parts. Among manufacturers in Taiwan it is common knowledge. The issue for many is the availability of parts if the phone takes off.”

Giving weight to these rumours are analysts from J.P.Morgan and Morgan Stanley, who think Taiwanese electronics manufacturer Hon Hai Precision is tipped to build the device (though Morgan Stanley believe the decision still hasn’t been made), while another analyst in Taipei has said Taiwan Green Point Enterprises, which makes plastic cases for the iPod, is in talks with Apple for a role in the phone.

iPhone Inevitability

Irrespective of who builds the iPhone, the fact is an iPhone must be released if Apple wants to continue in the consumer electronics market. Sure it has its computer market to fall back on, but the iPod gives it glamour, serious cool, and a large chunk of its profits. If Apple loses the iPod, a lot of its glamour goes too, and it goes back to being a niche computer manufacturer beloved of geeks, but on few people’s radar.

The Nokia Challenge

Clearly Nokia recognizes this, and also recognizes the fact that an iPhone will be a serious competitor. Motorola’s RAZR sold in incredible numbers through hype, coolness and desirability, which Nokia’s nameless phones rarely generate. And if the RAZR sold well because of cool, an Apple iPhone, if executed correctly, could outsell all the major mobile manufacturers combined. By stating now how they destroyed the digital camera market and drove big established names out of business, Nokia are well and truly laying down the gauntlet to Apple.

From Nokia’s perspective, getting Apple to rush release the iPhone makes sense, as it increases the chance the hype will not be matched by reality (witness the Motorola ROKR ‘iTunes phone). Equally, an iPhone must compete on Nokia’s own territory, one in which it absolutely dominates.

Maybe Nokia, too, are getting bored with all the rumours, and trying to get Apple to own up to its mobile phone ambitions, just to put an end to the suspense. More likely, however, Nokia’s well timed statement is a shot across the bows to Apple, and one that should be well-heeded. In 5 years’ time, a stand-alone MP3 player will be as anachronistic as a personal CD player is today.