Thu, 24 Jul 2008 Apple warned of iPhone threats

Competitors begin touch tousle with Apple on mobile

Jonny Evans

Apple has no space to relax, analyst Yair Reiner of analyst firm Oppenheimer, warned last night - competing touch screen devices will form stiff competition for the company.

He was talking about touchscreen maker Synaptics, arguing that Apple's aggressive $199 price on the iPhone 3G would limit the market for such devices. And now he's gone and changed his mind.

"We downgraded (Synaptics) a month ago on the thesis that the iPhone’s price reduction would curtail the market opportunity for the competing touchsceen handsets that Synaptics supplies,” he wrote. “Our thesis was wrong.”

He observes positive results in terms of sales when various mobile phone carriers begun widening their subsidies on non-Apple touchscreen devices. He notes particular demand for the LG Secret, HTC Diamond and Samsung Instinct phones.

He also notes Synaptics has good relationships with Samsung, Nokia and Research In Motion, and predicts future products from all these firms will give Apple a run for its money.

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