After a day where Apple Inc. Apple Inc. (NASDAQ: AAPL) shares climbed 6.43% to $127.39, today the shares were nearly flat most of the session despite the plethora of news surrounding the company.

First, we found out that Japan is investigating a possible defect in the iPod nano after "the digital music players reportedly shot out sparks while recharging." These kind of potential problems with lithium-ion batteries are not new; throughout 2006-2007 consumers experienced many recalls of mostly laptops -- including Macs -- equipped with such batteries. But the question this time around is whether Apple had knowledge of the problem and delayed reporting it, as Apple's filing with the ministry came two months after the reported incident in Japan.

Mind you, Engadget has been reporting on such incidents for quite a while, all relating to the same model. Almost a year ago, a first generation iPod nano was reported by an Australian to go up in flames, then in October of last year an iPod spewed chest-high flames from trousers, and earlier this month an iPod sparked a bedroom fire. So the problem was known, the question is what Apple plans to do about it now, if anything?

But there was some good news today as well.

All info from Engadget's liveblog:

Steve Jobs, Apple Inc. (NASDAQ: AAPL) CEO started with some facts about the iTunes: 600 million copies of iTunes distributed. Over 3 billion songs bought on iTunes. Over 95 million shows sold. Of all music released, 32% was in digital only in 2006.

"iTunes is clearly leading the way. We're going to ship a new version of iTunes tonight to support some new products. The biggest new feature: ringtones." Price 99 cents. As speculated, ringtones could be built as desired from own songs with over 500,000 songs participating.

Jobs moved to discuss the iPod. Sold over 110 million to date. There will be an iPod shuffle refresh with a new color RED to help diseases in Africa.

New iPod Nano with games, more storage, and a full metal design. It's even tinier and thinner with a larger 2-inch screen. Enhanced UI, 3 games, and battery life of 24 hours audio, 5 hours video playback. The 4GB will be priced at just $149. The 8GB version will be just $199. The new Nanos will be in our stores by this weekend.

Apple, Inc. (NASDAQ: AAPL) realizes that not everybody is thrilled to pay $600 for an iPhone. So today, according to Reuters, a JPMorgan Chase & Co. (NYSE: JPM) analyst announced that Apple will introduce a $300 nano iPhone.

The analyst, Kevin Chang, is based in Taiwan. His July 8th report cited people in the supply channel that he did not name and an application with the U.S Patent and Trademark office. He claims that in the fourth quarter Apple will introduce an iPhone based on the ultra-slim iPod Nano music player. (Apple filed a patent application document dated July 5 that refers to a multifunctional handheld device with a circular touch pad control, similar to the Nano's scroll wheel.)

Since 85% of U.S. cell phone buyers spend under $100, the pricey iPhone is not expected to take a big share of the cell phone market. But with its lower price, Chang believes that the nano iPhone would achieve 2008 sales of 30 to 40 million units.

Meanwhile, Chang suggested that a Taiwanese metal casing company, Catcher Technology Co. Ltd (TPE: 2472), could sell $183 to $244 million worth of metal cases for the nano iPhone in 2008.

If Chang is right, the nano iPhone could be great for Catcher and Apple shareholders.

Update: AppleInsider reports that the U.S. branch of JPMorgan Chase is disavowing Chang's report. Senior analyst Bill Shope noted that Chang's sources have yet to be corroborated and would contradict Apple's historical business approach of waiting until a new device becomes truly necessary for the market. Shope has a neutral rating on Apple stock. I think JPMorgan Chase needs to get its corporate act together!

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

Billboard.com reports that a "prominent" Apple Inc. (NASDAQ: AAPL) spokesperson said that the next generation of iPods due out this fall or winter will feature similar functions to the new iPhone. This report came out yesterday, the same day that Apple shares dropped almost two dollars. Disappointed iPod users who are intrigued by the functions of the iPhone but do not necessarily want the phone itself, may feel this rumor makes up for their disappointment (if one can really call it that).

With the iPhone launch being such a success in terms of sales, one cannot help but wonder whether an iPod that is so close in design will enjoy the same level of success. The lack of phone and internet services might entice consumers with phone services other than AT&T (NYSE: T) to buy this device, by giving them the option of an iPhone (basically).

The new iPod could also find a home with current iPod owners (like me) who do not wish to buy the iPhone out of fear of bugs and problems. I still own an iPod model that was released before the introduction of the model with video, so that function especially interests me; I just do not know that the iPhone is not for me. Of course, the iPhone would certainly be me if I suddenly became impulsive!

Apple closed at $130.33 yesterday, down from $132.30 on Friday.

Currency conversion is one of those abstract concepts that's often hard to truly conceptualize. Sure, I realized the dollar is weak, but while one of my UK friends was visiting the states, I had a difficult time understanding exactly how strong the pound or Euro was, and when attempting to translate it into a "real world" situation, pricing disparities between countries make it difficult still.

Now, an Australian securities firm takes that metric and standardizes it using one of the most pervasive devices of the moment, the iPod. Commonwealth Securities, Ltd. uses the two gigabyte version of Apple, Inc.'s (NASDAQ: AAPL) iPod Nano to measure wealth disparity across the globe, creating the iPod index.

In theory, my friend shouldn't be so excited to come to the U.S. and purchase an iPod for "cheap," but rather the iPod's price should equate around the globe, according to currency conversions. Of course, that's not the case. In fact, Brazilians pay the equivalent of $327 for the flash-based device, while our Canadian neighbors to the north pay a mere $144 for what costs us here in the U.S. $149.

In its most recent quarterly earnings report Apple Computer, Inc (NASDAQ: AAPL) indicated that it shipped 8,729,000 iPods this last quarter, some 35% more than in the same quarter last year.

When asked, Apple indicated a large portion of the increase in iPod sales was due to the new iPod Nano that was recently rolled out. iPod demand accelerated and Apple said it was one of the reasons they exceeded quarterly expectations in iPod sales, iPod sales being a key component to Apple's strong performance since the iPod debuted.

This is a sharp contrast to the more frustrating initial launch of the iPod Nano, which though it did well, began with customer frustrations about easily scratch-able faces and screens. The new Nano seems to have hit the sweet spot for Apple and its customers.

Tobias Buckell is an author, freelancer, and professional blogger. He owns shares in Apple.

Apple Computer, Inc. (NASDAQ: AAPL) ended the day at $75.75, a $2.75 rise or 3.77% jump in the price of its stock. ThinkEquity Partners LLC analyst Jonathan Hoopes raised his estimate of the computer manufacturers target price to $100 within the next year. He's thinking that higher margins and the newest operating system's strengths will drive the price up.

Certainly his impression that Apple is working on its margins seems born out by this article in TG Daily that suggest the profit margin for Apple iPod Nanos are coming down, which is good news for Apple's profits.

After nearly a year of speculation, Apple (AAPL) seems poised to announce its much-speculated movie store as a part of iTunes. Apple Insider has learned that the co-founder of Apple Computer, Steve Jobs, plans this September 12th to "summon the worldwide media to a special event next week in which he'll usher in a new chapter in the company's digital media strategy."

Along with the likely push towards a bigger screen, Jobs is also rumored to likely announce new iMacs and a much-anticipated update to the iPod nano. The question is: will Jobs' introduce a new player for the movies so users don't have to get a crick in their neck watching the tiny screen? AppleInsider reports that Apple has quietly developed a video streaming device that will interface with an updated version of its iTunes Jukebox software.

Whatever Jobs' does announce, look for him to go after the competition (Microsoft, Sandisk, and now Samsung) with a new iPod nano and surprise everyone, as only he can, with the company's movie plans.

Has Apple stalled in the iPod-release marketplace? It's been just about one year since Steve Jobs announced the latest iPods, the iPod nano and iPod with Video.

Does the market need a new iPod every six months? According to some, the perception of a dated product can be just as destructive to sales as anything. Keeping a brand like iPod fresh on the minds of every consumer is a constant battle, although judging by iPod sales, no harm has been done -- yet.

Competitors have been busy releasing new models with boatloads of features, better designs and on more timely schedules than Apple. I seriously doubt Apple has "hit a wall" as this Cnet article suggests, although it is true that the competition has seen a flurry of activity in the last year. The last iPod released was the 1GB iPod nano in February, which was just a different version than the previously-released 2GB and 4GB models. Has anything really stalled?

If anything has stalled, Apple's sales are not showing it at all, as the iPod still commands 75% of the digital music player market as well as being the most popular music player on the planet. But I'd like to see categories here (flash or hard drive-based, and by physical capacity). Apple continues to have a huge advantage that just keeps being glossed over -- the strong and incredibly easy-to-use integration of the iPod and iTunes store -- which sells music, television shows and even distributes podcasts.

The competitors, including Microsoft's upcoming Zune, will continue to churn out products at lower price points with many more features than every iPod. Does that mean a sale gained? Hard to say -- but SanDisk is the #2 player in this market behind Apple, and it's getting better every day.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.

One reason Apple's stock price has been hammered lately is that a Wall Street analyst predicted that Apple would be unable to get a new generation of iPod out in time for back-to-school sales. Apple's stock price of late is tied very closely to performance of iPod sales.

Investors and consumers alike will be pretty psyched to see that ThinkSecret, one of the more prestigious Apple rumor sites, is reporting that a new iPod Nano will likely debut at next month's World Wide Developers Conference (WWDC).

The new iPod is expected to have a slightly larger capacity for songs, be in a metal alloy case to solve the scratching issues the Nanos have been dogged with, and be available in a series of colors.

In some ways the update doesn't sound like that much. Yet don't underestimate the importance of the scratch issue for Apple customers. Having a $150 device that is purchased for its stylish good looks start looking like a two-year-old scratched up piece of junk after it has been in a purse or pocket for a few weeks is not what Apple fans expect.

It's only halfway through the day, and Apple stock is up almost 64 cents, a 1.22 percent increase.

[Disclosure: I own Apple stock at the date of this post]

[Pic credit: Dan Taylor]

Macrumors is posting a story that links the rumor that Apple has been stocking up on NAND flash memory for iPods with a prediction that the iPod Nano will soon be reaching holding capacities of 12 gigabytes.

The iPod Nano did not have as big a launch as Apple had hoped, but the Nano is still an important part of the iPod brand. Apple is hoping to get the right price/point ratio for them to take off.

Positioning itself to purchase a significant portion of the NAND flash memory available could allow a bulk purchase that allows Apple to drop the price and raise capacity of the Nano. That would be an attractive combination. And if it comes right before back to school season it may prove a profitable one.

[Disclosure: I own Apple stock at the date of this post]

Merrill Lynch analysts believe there will be a dip in iPod sales in Apple's third quarter. Last year saw a similar call by financial experts who expected a 'cooling' in iPod sales that never came. But the third quarter is usually a slow time for electronics sales. And the iPod nano hasn't been quite the hit expected, thanks to the screen-scratching mojo that dogged it right out of the gate.

But there's a silver lining. The Merrill analysts think the general Apple lineup of laptops and desktops will make up for the dip in iPod sales. And other analysts point out that iPod video sales, shuffles, and the low end nano, are all marching along just peachy.

And, judging by last year's track record for iPod sales, Apple may surprise the perpetual 'iPod sales cooling off' crowd just yet.

[Disclosure: I own Apple stock at the date of this post]

Could a next generation iPod arrive on the scene soon? The Chinese company that manufactures the iPods recently said that the next iPod is about to unveiled by Apple. The cool 'rumored feature' for the new iPod will be the 'none-touch' concept.

Macrumors.com has a link to an Apple patent that could describe an audio interface for the iPod that could be the 'none-touch' feature that the manufacturers are mentioning. I can't imagine an audio interface to be all that useful. I see people walking around yelling spouse's names at their cellphones repeatedly trying to get them to voice-dial, and in loud situations these technologies tend to break down.

But the last major update to the iPod line was in February with the iPod nano. I imagine as the months creep forward we can expect more guesses as to what Apple is up to until the chatter hits fever pitch right before product announcement time. That's half the fun of following Apple.

The big question is, which upcoming Apple event will see the announcement? July in San Diego, WWDC in August, or the Apple Expo in Paris in September?

[Disclosure: I own Apple stock at the date of this post]

[photo credit: ugaldew]