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There is considerable anticipation over the possibility that Apple Computer could release a cellphone model. Although Apple never confirmed development of any such device, the rumors persist that Apple will announce in the next month at MacWorld a device that combines the entertainment functions of the company's iPod digital music player with a cellphone. The speculated-upon advanced device, if it becomes available, would put Apple in the cellphone business and would most likely give Apple a substantial revenue increase, which would be beneficial for shareholders in the long term. The stock is presently way up there anyhow, which might indicate that investors might want to wait. Some recent reports from analysts say Apple will sell millions of phones in just a few years, which means billions in revenue, and some analysts are also predicting the effects of an Apple cellphone on wireless carriers, chipmakers, and other suppliers of parts. Anticipation in the financial community is unusually high, says analyst Tony Sacconaghi, who does not own Apple shares and has a neutral rating on the stock because he believes an Apple phone could cannibalize iPod sales if consumers opt for the phone instead, limiting the financial upside. Even if Apple gets only a small share of the almost one-billion-device sales predicted for 2001, Apple will get a revenue boost.
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