The price is right
Apple has apparently been experimenting with ways to make the iPhone cheaper so it can expand the appeal of its handset.
There were rumours that Apple was working on a smaller, less pricey iPhone but now The New York Times has reported that sources within Apple told it that this is not the case.
According to the newspaper, Apple's engineers are beavering away on the next version of the iPhone, which will be a similar size and predicted to launch in the summertime. It said the firm is not planning to release a smaller version any time soon.
Another source reportedly told The NYT that Apple will not be making a smaller version because it would probably not be any cheaper to make as it would be trickier to operate and a smaller screen would mean some developers would have to re-write their apps, which Apple would obviously want to avoid.
Seemingly quashing the iPhone Mini rumour further, a senior Apple exec is understood to have said that it would make no sense for Apple to roll out multiple iPhone models but it will stick to its tactic of making the older models cheaper upon the arrival of a newer, shinier handset.
Apple is also reportedly trying to expand the appeal of its iPhone by making voice commands easier to use as an option to appeal to those who are not partial to a virtual keyboard. It is also thought to be looking at swapping some internal elements for cheaper options to drive the cost of the handset down.
A source who claims to have worked on different versions of the iPhone told the NYT: "Although the innards of the phone, including memory size or camera quality, could change to offer a less expensive model, the size of the device would not vary."
Apple is also rumoured to be working on a more flexible version of its Mobile Me offering, to allow people to store photos, files and music in the cloud then access them on their devices. It is thought the next version will also be free.
"The goal is that your photos and other media content will eventually just sync across all your Apple devices without people having to do anything," said the newspaper's Apple source.
It is thought that using the cloud could help Apple make cheaper phones with less storage. An analyst at Sanford C. Bernstein & Company reportedly said that a cheaper iPhone could boost Apple's unit sales sixfold.