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.
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.