Apple Developing New, Smaller, Cheaper iPhone To Fight Android

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Apple is developing smaller, cheaper iPhones to combat the rise of Android, Bloomberg reports.

Apple’s cheaper phone would be a third smaller than the iPhone 4, and cost around $200 unlocked, which means users don’t have to sign up for a two year contract at wireless carrier to get the phone for cheap.

(We assume it also means a carrier could subsidise the phone all the way down to $0.)

Apple could afford to lower the price of the iPhone because it wouldn’t use next generation components. It would rely on parts it is using for this year’s model.

This new model is only in the prototype phase, warns Bloomberg, and it could still be scrapped. Apple was aiming for a mid-year release.

Additionally, Apple is trying to develop technology to allow people to use their iPhones on different carriers, according to Bloomberg. Apple wants to make it so you don’t have to change your SIM card to jump from carrier to carrier. New Apple software would help make switching easier.

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