Friday, February 11, 2011

Is Apple Building an iPhone Nano? [REPORT]

by Vadim Lavrusik
Apple is in the process of building at least one new model of the iPhone that would be cheaper and about one-third smaller than the current iPhone 4, according to a new report.
Bloomberg, citing “people who have been briefed on the plans,” says Apple is considering launching a series of inexpensive phones as a way to counter the growth of Google Android. Apple is considering selling one of these devices for $200 without a two-year contract. The 16 GB iPhone 4 costs $599 without a service contract.
The device is supposedly “about one-third smaller than the iPhone 4″, according to one of Bloomberg‘s sources. The source supposedly saw the device sometime last year, so even if it is true, a lot could have changed.
Apple is also reportedly working on Universal SIM technology and dual-mode phones that can work on both CDMA and GSM networks. Neither of these reports surprise us. Apple has chosen Qualcomm to deliver chips that work on both networks. In fact, the Verizon iPhone could potentially work on both networks, since it uses a dual-mode Qualcomm chip.
Apple has also been interested in creating a SIM that would let users switch between networks. However, pressure from the networks could easily nix those plans.
A smaller version of the iPhone, one with older components and a smaller screen to keep the price down, would have to run iOS without compromising the integrity of the user experience. Apple has done this before in other markets (think about the iPod Nano), but Apple already sells a cheaper iPhone: the iPhone 3GS, available for $50 with a contract.
An “iPhone mini” or “iPhone nano” would be an interesting play, but like many projects at the company, it could be scrapped long before it sees the light of day.

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