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Bloomberg: Apple Working on Smaller, Cheaper iPhone Models

Bloomberg has just reported that a source has revealed plans of Apple working on smaller, and cheaper iPhone models to compete with Android. Rumours include a $200, unlocked device with multiple band capabilities:

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.

Apple has considered selling the new iPhone for about $200, without obligating users to sign a two-year service contract, said the person who has seen it.

While Apple has aimed to unveil the device near mid-year, the introduction may be delayed or scrapped, the person said. Few Apple employees know the details of the project, the person said. Apple often works on products that do not later get released.

The prototype was about one-third smaller than the iPhone 4, said the person, who saw it last year.

Apple is working on a technology called a Universal SIM, which would let iPhone users toggle between GSM networks without having to switch the so-called SIM cards that associate a phone with a network, according to one person.

The source also notes components from the iPhone 4 will be used, instead of newer components from the upcoming iPhone 5.

What do you think? Will we see a smaller, cheaper ($200) iPhone from Apple? iPhone Nano? Wearable iPhone Shuffle (not likely!)?

[Bloomberg]

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • Dale123

    bull turd, says I.

  • http://www.iphoneincanada.ca Gary

    The iPhone rumour season has started. It’s that time of the year. Bring it
    on!

  • AnonymousGuy

    Not going to happen. They are already selling out on the over-priced iPhone 4, so it wouldn’t make any sense.

  • iphonelover

    Makes sense, however I wonder what this will do to Apple’s average revenue per phone which now hovers over $600 per unit.

  • http://twitter.com/ktaifan Robert M

    Concerned that this may detract Apple’s image of a high-end brand vs. one that is for the cheap prepaid masses.

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