Predictions for Macworld Expo San Francisco 2009: New iPhone

It’s time to start another Macworld product rumor. Today the iPhone moves to center stage on my list of predictions. Once again, my crystal ball has no connection to Apple sources.

Courtesy of Apple

There’s nothing really wrong with the current iPhone, nor are there any recent changes in technology that Apple could embrace in an updated iPhone. My prediction for a new iPhone is driven by the economy, one that has consumers keeping their hands off their wallets and rationing their purchases.

Times like these are golden opportunities for companies that have resources to spare, and Apple has a boatload of cash in reserve. That cash isn’t earning its keep in terms of interest in the current market. A better use for it might be to use it to cause a world of trouble for competitors who aren’t in the same rosy financial position.

By introducing a lower-cost iPhone (some people are calling this the iPhone nano), Apple could sew up the smartphone market, leaving only specialty niche markets for the competition. The original iPhone was a game changer. An iPhone in the $99 to $149 price range could change the game even further, making it difficult for other touch screen smartphones to perform well in the market.

For an added bonus, Apple could open this new model up to other carriers, although I don’t think that’s likely to happen any time soon.

Rumor Roundup: Macworld 2009