Apple may be working on a new version of iPhone that would be cheaper and smaller, Bloomberg reports. According to the person who have seen the prototype of the smaller iPhone, Apple is hoping to take a bigger bite of the growing market share of Google’s Android in the smart phone market.
According to the tipster the cheaper iPhone might sell for about $200, without requiring the user to sign a two-year service contract.
The rumored smaller iPhone is about one-third smaller than the iPhone 4 and had no “home” button. It’s cheaper because it will use parts similar to the current model instead of a more advanced part that will be used in the next iPhone, added the person.
The cheaper and smaller iPhone might be launched in the middle of this year, however the debut may be delayed or scrapped according to Bloomberg’s unnamed source. Apple often works on many products but some end up unreleased.
According to the report, Apple is also working on a technology called a universal SIM, so users can switch between GSM networks without having to replace their SIM cards.
Apple declined to comment about the rumors.
