iSpy
Apple is rumoured to be working on a cheaper version of its iconic iPhone, designed to compete with cheaper Android offerings in particular.
One anonymous person who has apparently seen the prototype told Bloomberg that it is smaller and cheaper than the iPhone and should be easier to use on multiple wireless networks.
It is believed that Apple's CEO Steve Jobs' plan is to lower the price of the fabled mini Apple phone in a bid to make it more desirable and affordable to more people and compete with value Android offerings.
Charlie Wolf, at Needham & Co. in New York, told the news service: "Instead of targeting 25 percent of the global mobile-phone market, Apple would be going after 100 percent,"
Canalys has previously reported that Google's share of the smartphone market is almost 33 percent in Q4 2010, while Apple's was 16 percent, indicating the benefits of having a range of handsets at various price points.
Unsurprisingly Apple has not commented on the rumour but Bloomberg's source reportedly said the company will consider selling the iPhone mini for around $200 PAYG. In comparison, the current iPhone 4 costs between $200 and $300 when subsidised by a hefty contract.
Apparently Apple had planned on bringing the smaller iPhone to market in mid 2012 but the project could reportedly be delayed or scrapped completely, according to Bloomberg's source who added that Apple often works on products that never see the light of day.
The prototype mini iPhone is apparently a third smaller than the current offering without a ‘home' button and would cost less as it will use the same processor as the iPhone 4 instead of the next generation tech Apple is working on for the iPhone 5.
A cheaper iPhone offering would no doubt help Apple push into lucrative markets like China and India where people often opt for PAYG or short contracts, Wolf reportedly said.
