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Smaller, cheaper iPhone model would help broaden appeal  (Source: Apple)
Could this finally be the iPhone nano?

Apple has one of the most popular smartphones on the market with the iPhone. The part that is so impressive is that Apple has managed to become one of the largest smartphone makers in the world on the back off relatively few iPhone SKUs whereas other makers like Nokia have hoards of devices to offer.

Apple is looking to broaden its appeal reports BloombergBloomberg cites sources familiar with Apple's plans that claim Apple has a cheaper and smaller smartphone in the works. The device is said to be about one-third smaller than the existing iPhone 4. This could well be the long rumored “iPhone nano”.

The source claims to have seen a prototype of the device last year and notes that the device was a prototype and Apple often develops prototypes that never launch. The source also claims that the smartphone has no Home button like the current iPhone uses and Apple is looking at a sales price of about $200 with no subsidies and no contract needed from carriers.

That would make this phone one seriously popular handset on pay-as-you-go networks.

Bloomberg reports that the smaller and cheaper second iPhone model is a move by Apple to grab more of the market to stave off the growing Android threat. Analyst Charlie Wolf from Needham & Co. in NYC said, "Instead of targeting 25 percent of the global mobile-phone market, Apple would be going after 100 percent."

Apple already owns 32.9% of the smartphone market as of Q4 2010 and a second phone that sells without a contract at a lower price would make that percentage grow. The smaller and cheaper handset would also allow Apple to target countries where consumers buy cheaper devices such as India and China.

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RE: Woah that's serious !$*@! If it's true...
By MrTeal on 2/11/2011 2:22:31 PM , Rating: 3
Come on, the $50 shuffle has half the capacity of the 2001 iPod and 1/5th the functionality. It's garbage, the 1GB chinese off-brand MP3 player I got as a handout at a job fair is more useful.

To be a valid comparison, Apple would have to be looking at introducing a new phone with nothing but a 12 button keypad, character LCD and a fruit logo on it. There's a difference between releasing a budget model at a completely different price point and a price drop.

RE: Woah that's serious !$*@! If it's true...
By Pirks on 2/11/2011 4:20:35 PM , Rating: 1
There's a difference between releasing a budget model at a completely different price point and a price drop
Either one will increase your market share quite a lot, hence it doesn't matter.

RE: Woah that's serious !$*@! If it's true...
By Alexstarfire on 2/11/2011 5:16:26 PM , Rating: 2
That's like saying all that matters is results, which most people in this world would disagree with.

RE: Woah that's serious !$*@! If it's true...
By Pirks on 2/11/2011 5:35:52 PM , Rating: 1
Explains why most people in this world are not the rich executives of big companies

By Alexstarfire on 2/11/2011 11:41:03 PM , Rating: 2
Not really, they aren't one and the same. You don't have to exploit people to get ahead/do well. It does explain people like Hitler, Stalin, and pretty much every other evil person you can think of. Even if your end goal is world peace killing half the population of Earth isn't acceptable.

RE: Woah that's serious !$*@! If it's true...
By plewis00 on 2/11/2011 6:58:22 PM , Rating: 2
The funny thing is, if they actually did release that '12 button keypad, character LCD and a fruit logo' handset (a la Motorola F3), and put it in a stylish aluminium case, I bet you they could sell it for around $100 and shift loads.

The Shuffle sells well (apart from that travesty buttonless third-gen model which forced you to use the god awful Apple-included earbuds) because it's a basic device wrapped up in a half-decent case - you can't deny the Shuffle's casing is very aesthetically pleasing, comfortable and good to look at.

RE: Woah that's serious !$*@! If it's true...
By Iketh on 2/12/2011 2:49:17 AM , Rating: 2
aesthetically pleasing = good to look at

By plewis00 on 2/12/2011 5:06:43 AM , Rating: 2
That's all you had to add to the discussion? Well done.

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