Wall Street analysts report Apple develops new iPhones

Shaw Wu, who is an analyst at Kaufman Bros., said yesterday he has information that Apple develops new models of iPhones, which have both smaller and larger touch screens. According to his sources close to Apple's supply chain overseas new products will most probably appear next year and support such carriers as Sprint, T-Mobile and Verizon.

"Our sources believe these likely represent new high-end and low-end iPhone models to complement its current iPhone 4. One possibility we are picking up is a "mini" or "nano" iPhone with a smaller candybar form factor leveraging technology in its new mini touchscreen iPod nano."

Apple has been developing these models for a quite a long time, so it is expected that they will be presented in as soon as the first half of 2011. Besides, the company traditionally releases new generations of their handsets in the beginning of the summer.

"We believe Apple moving to a more complete iPhone product line makes strategic sense in that its iPhone 4 addresses only the high-end of the market. We think Apple should take a page out of its iPod playbook where it has had a lot (of) success with a 3-tier strategy addressing entry-level, mid-range and high-end, making it difficult for competitors."