Major Revamp Coming For iPhone In 2012? - Apple (NASDAQ:AAPL), Dell Technologies (NYSE:DELL)

According to an article at AppleInsider.com, the technology behemoth is set to unveil a "major revamp" to the iPhone in 2012, which may include a new charging method for the device. The new report suggests that the iPhone will be smaller and lighter with an 8-megapixel camera. Apple

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supposedly wants to build as many as 25 million of the new units by the end of 2011, but sources indicate that the updated model is "complicated and difficult to assemble" so, as always, production constraints could be a headwind. "People briefed on Apple's plans said the company is planning a major iPhone revamp then, with one person saying the company has been experimenting with features such as a new way of charging the phone," the report said. This shouldn't come as too much of a surprise, as Apple is the king of innovation...much to the chagrin of tech dinosaurs like Hewlett-Packard

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, Microsoft

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and Dell

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. The Wall Street Journal has also reported that the company may be working on a less expensive phone. These rumors were given increased credence last week when Deutsche Bank analyst Chris Whitmore suggested that Apple will release a $349 contract-free iPhone later this year.

ACTION ITEMS:

Bullish:

Traders who believe that a revamped iPhone in 2012 and a possible cheaper version of the device will drive profits and optimism to even greater levels for AAPL should consider:

Buying the stock - AAPL - that hasn't worked out too bad...

Shorting Apple competitors hasn't worked too bad either...um, RIMM, NOK, we are talking about you!

Be the ultimate bull! Buy out of the money LEAP call options on Apple. If the stock soars over the next year or two, you should clean up.

Bearish:

Traders who believe that Apple world domination forever is a little far fetched may want to:

Buy RIMM and NOK shares...if you really want to try such a stunt. Well, at least they are cheap!

Short AAPL - the ultimate contrarian play!

Bet on a full-blown market meltdown - if we get a good old fashioned stock market crash, you can bet that investors will be scrambling to yank money out of AAPL given its liquidity. Everyone owns it and it is an easy stock to hit the sell button in and raise cash in a hurry.

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