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iPhone Nano Binned - Cheap iPhone On The Way

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Remember last week we brought you news of an iPhone Nano? Well you’ll have to get that idea out of your head as it is reported today that the cheaper iPhone will not be smaller but will be……well cheaper.

A lengthy report in today’s New York Times states that the fruity Cupertino residents will be bringing a similar sized iPhone to the market but with cheaper components and therefore at a lower price, aimed at a sector of the market Apple has previously not targeted. The NYT quotes “people briefed on Apple’s plans” who of course have to remain anonymous. Last week it was Bloomberg quoting sources regarding a scaled down version of the iPhone and those sources claimed to actually have seen a model. Of course this could have been one of numerous designs Apple has been playing with and could now be consigned to the dustbin.

The NYT sources say that the smaller iPhone would not necessarily be cheaper to manufacturer and would be more difficult to operate. Another problem with a smaller screen would mean developers having to re-write a lot of apps, which is a situation Apple is looking to avoid. However, in an effort to make the full-size model cheaper Apple is looking at changing the internal tech to the most cost-effective components: “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,” said one of the sources who worked on a number of devices.

Another source claims that MobileMe, the online photo, music and file sharing system which currently costs $100-a-year, will be free and allow users to sync their files wirelessly. “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,” the source said. Analysts claimed in the NYT report that a low-cost iPhone could help Apple extend its market reach by as much as six times. This would obviously be a very attractive proposition for Apple and with increased competition in the smartphone space from Android devices, often at much lower prices, it would seem like a natural progression for Apple to expand its options.

Sources: New York Times

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