Apple Working On Smaller, Cheaper iPhone, Revamping MobileMe Service

iPhone nano

Couple of days back, Bloomberg had reported that Apple is working on a smaller and cheaper iPhone, which could be priced at $200 without requiring a contract.

Wall Street Journal who have a good track record with Apple related news, seem to have just confirmed that Apple is indeed working on a smaller and cheaper iPhone nano, which may be released this summer.

WSJ reports:

One of the people, who saw a prototype of the phone late last year, said the device is intended for sale alongside Apple’s existing line. The new device would be about half the size of the iPhone 4, which is the current model.

The new phone would be available to carriers at about half the price of the main iPhone repertoire. That would allow carriers to subsidize most or all of the consumer’s cost, putting the iPhone in the same mass-market price range as rival smartphones, the person said. Apple currently sells iPhones to carriers for $625 apiece on average. With carrier subsidies, consumers can buy iPhones for as little as $199 with a two-year contract.

WSJ also reports that Apple is planning to revamp its MobileMe service and considering to make the service free. The revamped MobileMe service might allow users to store photos, videos and music online, eliminating the need for the iOS device to carry a lot of memory.

According to WSJ, the smaller and cheaper iPhone nano and revamped MobileMe service may be released this summer.


iPhone Nano To Come With Edge To Edge Screen; Revamped MobileMe Service To Offer Wireless Access To iTunes Library

Would you be interested in buying an iPhone nano? Would you dig a free MobileMe service? Let us know in the comments section below.

[via WSJ]