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Palm Pre gets B+ for first day impact, Apple may be anticlimax too

By CAROLINE GABRIEL

Published: 8 June, 2009

READ MORE: Apple | Palm

Continued ...

Now all eyes are on Apple and whether it will announce new phones this week. The company itself seems to be playing down expectations, focusing heavily on software and the new iPhone 3.0 release in its pre-event interviews. However, there may be variants on the existing iPhone, such as a 4Gb entry level model, and some are still expecting a new top end videophone with 32Gb of memory. If both of these were to appear, Apple would be effectively squeezing Palm in a pincer movement.

A research note from Apple watchers at Piper Jaffray warned shareholders not to get their hopes of new hardware too high - "given our expectations, we are anticipating WWDC to be a slight disappointment to investors," wrote Gene Munster, who said expectations of a $99 4Gb iPhone "appear to be aggressive."

However, fellow analysts at Canaccord Adams said in their own note: "New iPhone - high probability event with the 32Gb ready for launch", though they called a $99 iPhone a "medium probability event".

Apple itself says the main spotlight will be on iPhone 3.0 and the new version of the Mac OS, Snow Leopard. While there has been some speculation that CEO Steve Jobs, off on sick leave, will make an appearance, this is not widely expected.

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