Apple Working On Smaller And Cheaper iPhone Model

iPad 2

It looks like the iPhone nano rumors are back.

Bloomberg is reporting that Apple is working on smaller and cheaper version of the iPhone to take on phones powered by Google’s Android.

According to the report, the smaller iPhone model could be priced at $200 without requiring a contract.

Bloomberg reports:

Apple Inc. is working on new versions of the iPhone that are aimed at slowing the advance of competing handsets based on Google Inc.’s Android software, according to people who have been briefed on the plans.

One version would be cheaper and smaller than the most recent iPhone, said a person who has seen a prototype and asked not to be identified because the plans haven’t been made public. Apple also is developing technology that makes it easier to use the iPhone on multiple wireless networks, two people said.

Bloomberg claims that according to the person who saw the smaller iPhone model, the prototype was one-third smaller than the iPhone 4.

This is not the first time we’ve heard of Apple’s plan to launch a smaller iPhone, which has been dubbed as the iPhone nano. But back in January 2009, Apple’s acting CEO, Tim Cook had killed the iPhone nano rumors saying:

“You know us, we’re not going to play in the low-end voice phone business. That’s not who we are. That’s not why we’re here. We’ll let somebody do that, our goal is not to be the unit share leader in the phone industry. It is to build the best phone.”

Bloomberg also reports that Apple is also working on a dual-mode iPhone that will support both GSM and CDMA networks:

Apple is also working on a so-called dual-mode phone, two people said. This device would be able to work with the world’s two main wireless standards — the global system for mobile communications, used by AT&T and overseas carriers such as Vodafone Group Plc, and code division multiple access, used by Verizon Wireless. It isn’t known whether Apple intended to include this capability in the cheaper iPhone.

The report also claims that Apple is working on built-in SIMs that would give options to customers to select the carrier of their choice at the time of purchase of the phone.

Do you think Apple enter the low-end phone business? Would you be interested in a contract-free iPhone nano? Let us know in the comments section below.

[via Bloomberg]

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  • Beat your ass

    I think it will eventually happen but I dont really think it will be a big hit. If anything more people might be looking for slighty larger phones.

    • Frank

      I agree

      • Lavender

        I agree too … but I posted my reply down below by accident.

  • Jayson

    Android?! EPIC!!!

  • http://yahoo.com MK

    I dont think apple is planning they want big revenue

  • jordan

    Apple doesnt do low end+

    • Lavender

      They may need to subvert low-end customers from getting on the Android bandwagon and staying there longterm.

  • Kane

    oh c’mon, this old chestnut is a bit old

  • Dan

    Well, they could really have a hit with a smaller phone if it had a physical keyboard with it. Then people would definitely buy it if it didn’t have a contract.

  • http://www.jailbreakmovies.com Jeff

    No way the mobile companies are going to let that fly. But it would be nice to have a few alternatives though. Still, I’d never buy it, I love the bleeding edge features too much to compromise.

    • http://webpages.marshall.edu/~turner169/ Damien

      “No way the mobile companies are going to let that fly.”

      And how exactly can mobile companies stop them? Not sell them in stores? Sold exclusively online for $200 would still sell tons of the suckers; how could they be stopped? Especially on a GSM network, just pop a sim and and go! CDMA, maybe not so easy but still. If a CDMA network refused to allow them hows that going to affect business for them? They’ll lose it that’s what; there’s no way these mobile companies can stop it and not suffer.

  • http://www.neediff.com Shena

    Seems kinda like what HP is doing with the Veer.

  • http://www.motorbeam.com/ fas

    I dont think Apple will launch smaller version.

  • Rob

    There are alot of people on pay-as-you-go plans where the phones are not subsidized. Whether for credit reasons or contract phobia, some of them want an iphone. Boost mobile and MetroPCS would be perfect carriers for it.
    But I don’t think it will happen anyway.

  • Jim e Phone

    Apple makes money on the APP STORE… and ITUNES.. so the more low end devices it gets out there the more apps, music and video they sell.. eventually they will have free versions (which this would probably be) with a 2 year contract.. and boom, a billion more apps get sold… genius!

  • Kwopau

    I don’t think Apple would make this kind of small iphone. Pointless and useless. Almost all smartphone you see out there are usually big and never has been a really small one. It would be a bad move on Apple to make a small version of the iphone (iphone nana). I can see that not many people will buy it just because it’s too small to carry around and can be lost or stolen easily.

  • Pacomac

    Those mockups are a joke! Someone has taken the standard iPhone display and chopped a row of icons off! Sorry but Apple would definitely not release a phone with a different resolution, and loose out on a back catalog of existing software. Sure they would decrease the dot pitch of a 3GS to make it nearer retina quality, that would make perfect sense.

  • Asger

    Small iPhone, is not going to happen..

  • JayRolla

    Done with my iPhone, Atrix here I come.

  • nonomia

    It is just a joke !!! Adroid Powered ^^

  • nATHAN

    i would get it!the iphone has always looked like a good phone; however, it has been very expennsive – this is a clever move by apple

    • Andrew

      your a dumbass 199 is not expensive for the new model 99 for the old model and even 49 sometimes fucking retard

      • Elvin

        He’s talking about the plans not the phone dickwad

  • Chunky

    Fuck this bring the iphone 4 unlock!

  • Lavender

    I agree too – I think if Apple does develop these phones, it will be to divert potential low-end Android customers – after all, Timcook’s comment 2 years ago was about low-end dumbphones.

    But the low-end smartphone and its consumer market now exists – and I’d expect that it’d be an entry point for consumers to subsequently upgrade to higher end smartphones.

    It’d be a potential nightmare (or at least major dampener) for Apple if customers who wanted a cheaper option went with low-end Android, and then stayed with Android as they upgraded later. They’d be influencing their emerging consumer friends too who might go straight to Android if that made it easier to interact in their social circle.

    For me personally, I’d welcome a cheap-iphone as a diversification (fragmentation) of the ios options … i.e. I’d await a ultra high-end iphone max or something. Realistically, I think I’ll go Android superphone as soon as my iphone3gs contract finishes in 8 months, as I’ve really had it with itunes. Might be back for iphone7.

    • Lavender

      That “I agree” was supposed to be below Frank’s comment above.

  • Dude562

    Haha WTF the 3GS is already $49 bucks I wonder how much this will cost with a contract xD $00.01 lol

  • shalashaska

    I say it isnt possible given the insane sales apple is making..if u want cheap iphone..buy an ipod touch alongside ure owned phone…or buy a 3g.. dont get me wrong..android is a nice OS..but once uve started with an iphone..anything else would feel like beta

  • im smarter then you

    apple needs to change there home screen it looks all the same and a matter of fact i cant tell the difference between an iphone 3g or a 3gs dam even the iphone 4 looks the same and i bet iphone 5 will look excatly like iphone 4 just a picture of some apps is all you will see me on the other hand would rather get a phone with beautiful display like moving clouds and a big flip clock or something iphone im so bored of the same shit hasnt google taught u anything as of yet and even microsoft windows 7 phone looks sexier dam if the phone is going to look the same thrown in a least a screen saver or something shit apple im bored already even your ipad looks the same.its all the same just like computers they need to make a htc computer with a big clock and video animation or something dam apple your shit really really old just like steve jobs is because hes too old just like the phones are the only way to change your phones it to jailbreak it and thats sad that cydia has more ideas then appple

  • http://www.iwebsnacks.com/ Karan Mehta

    Well, the competition has gone so high that now Apple is reducing price for a product which started the Smart Phone industry. I am not convinced with this. Apple is known to re-invent and should do that. We love it so much that we wont mind paying for something which is worth it. I dont forget queues that stand outside Apple store before a launch.

    Hail Apple!!!