Rumor: Apple working on iPhone that's 1/3 smaller and will cost $200 off-contract

Published: February 10, 2011

iPhone Nano

Rumors of an "iPhone Nano" are certainly not new, but it's been some time since there's been any mention of such a device. Today those rumors got a breath of life, though, as Bloomberg has heard from "people who have been briefed on the plans" that Apple is working on a new model of the iPhone that's one-third the size of the current model and could launch at a price of $200 off-contract some time this summer. It's important to note, though, that the source saw the device last year and says that the device may have since been delayed or even axed altogether. The sources also claim to have some dirt on an upcoming iPhone, saying that Apple plans to release a handset that would be compatible with both CDMA and GSM support.

Finally, Bloomberg is reporting that Apple is working on an integrated "Universal SIM" technology that would allow iPhone owners to select which carrier they want to use and jump between networks without having to worry about SIM cards or swapping devices.

I've always thought that the rumors of a mini iPhone seemed kind of ridiculous, but today it doesn't seem like a completely terrible idea. After all, Android is already infiltrating the pockets of users all over the world, and we've recently see quite a few cheap but still capable Android handsets hit the market (the Comet and Optimus devices come to mind). The iPhones have pretty much always been more high-end and more expensive, but a new cheaper iPhone, free on-contract could entice a new set of customers. Apple would have to make some compromises with an iPhone Nano, like using a lower-res display and perhaps more plastic than metal, but it would be a pretty interesting move. Do you think a smaller, cheaper iPhone is a smart decision?

Via Bloomberg

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