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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 Tony Swash on 2/12/2011 7:35:05 AM , Rating: 0
I wonder if a cheaper iPhone could be connected to this?

A patent recently granted to Apple could wrest power away from the wireless carriers by creating a mobile virtual network operator (MVNO) system that would allow networks to bid against each other over wireless services provided to iPhone users.

I have long assumed that at some point, when Apple had all the pieces in place (such as this perhaps ) and it's phone business was well established that it would try to break the power of the carriers. Apple had to back down last year on the integrated SIM (see ) but I assume that that was tactical and that Apple's ambitions remain the same.

Steve Jobs has instilled in Apple an absolute commitment to controlling every component and element that goes into a product stack. I am sure Apple hates the remaining power that the carriers have and unlike Google has no intention of propping it up or even just enduring it. Apple wants to disrupt the whole of the telecoms world. Not so much 'Think Different" as "Think Gigantic".

RE: Woah that's serious !$*@! If it's true...
By MartyLK on 2/12/2011 11:12:25 AM , Rating: 2
I really can't think that's a bad thing. The carriers are raping us all bad enough as it is. Apple has always been the one to free the consumer from crap. Until the iPhone came along, we all had pure crap to contend with. The iPhone was the break-away smartphone that basically told the rest of the industry, "Screw you". It had so much going for it:

Solid design
Simple UI
Intuitive UI
Capacitive touchscreen
Light sensor
Proximity sensor
Closed and controlled system
Constant attention from Apple

If this was in the automotive world, the big 3 would have squashed it. But anything Apple does is bound to be good for us all.

By robinthakur on 2/14/2011 7:35:08 AM , Rating: 3
I tend to agree on this. People who complain about Apple and the iPhone forget how absolutely awful and stagnant the world of phones was before Apple changed everything and sales were slumping. It was an industry where nobody really cared about creating a good interface or customer experience, and one had lovely hardware made completely useless by the software. Apple also started telling the carriers what to do and it was able to do that because of it's groundswell of popularity. Before that, the carriers were fully in charge and branding phones etc, which I can't really see Steve ever allowing. Android and all the rest should thank Apple for rescuing a stagnant industry and showing them the way.

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