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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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what i think is happening
By cmdrdredd on 2/14/2011 11:35:08 AM , Rating: 2
Apple has the phone and ipod touch. Essentially the same device except the iphone can make calls. They want to build a phone for people unwilling to buy an iphone because of the cost. Why have an ipod touch if your iphone does it all anyway? So build a smaller phone and drop the memory and some of the media capability. Then release a netflix like service for music and video. Charge people a subscription fee to use it. I have read that apple has been working on a new musc service for a while. I think it is a subscription based steaming service using the new iphone as the main device that uses it. If you want a full featured iphone you can get it but some people want more of a basic device and this specialty service is to entice these customers.




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