Apple is potentially developing a smaller iPhone that would be cheaper and better able to fend off inexpensive Android phones, Bloomberg reports.
The news comes after previous rumors that a smaller iPhone was in the works &8212' akin to how the iPod Mini followed the original iPod. One person who saw a prototype of the smaller device said that it was about a third smaller than the current iPhone, and it also lacked a home button.
Apple was bound to offer a lower-cost iPhone eventually, especially now that cheaper Android phones like LGa4‚¬a4„s Optimus One series have proven to be successful. A lower cost option will also make the iPhone more appealing in international markets.
Apple is apparently aiming to sell the smaller iPhone for $200 without the need for a two-year contract. That would be a significant change from the iPhone 4, which retails between $200 and $300, but requires a two-year commitment. By being without a contract, users would be able to easily move between multiple cellular carriers, something that would also appeal to international users.
If Apple actually moves forward with the plan, it will certainly have to make it clear to consumers why they would want to pay the same $200 for a lesser iPhone that they would for the newest model. Such a low cost also leaves the door open to some carriers offering the smaller iPhone on contract for free.
According to Bloomberg, Apple is also working on a dual-mode iPhone that would be able to work across GSM and CDMA cellular standards &8212' the technologies used by AT&'T and Verizon, respectively. That doesna4‚¬a4„t come as a huge surprise, as we reported recently that the Verizon iPhone runs a wireless chipset that could potentially run on AT&'Ta4‚¬a4„s network &8212' a clear sign that Apple is aiming to support both standards in the iPhone 5.
Apple is also developing a technology called universal SIM that would allow consumers to switch between multiple GSM networks without the need to switch out traditional SIM cards. Such an innovation would make it easier for users to jump between networks, and if paired with an inexpensive iPhone without a contract, it could lead to newfound freedom for cellular users.
Calling all developers: We want to write up your app for VentureBeata4‚¬a4„s Mobile AppSpotlight! If you have an innovative mobile app that hasna4‚¬a4„t been featured on VentureBeat yet, submit it for consideration right away. The Mobile App Spotlight is sponsored by The Intel AppUp developer program.
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Companies: Apple
Companies: Apple
Devindra Hardawar is VentureBeat's lead mobile writer and East Coast correspondent. He studied philosophy at Amherst College, worked in IT support for several years, and has been writing about technology since 2004. He now lives in Brooklyn, New York. You can reach him at devindra@venturebeat.com (all story pitches should also be sent to tips@venturebeat.com), and on Twitter at @Devindra.
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