Report: Apple making cheaper iPhone to fight Google
Citing a source who has seen the prototype, Bloomberg reports that one iPhone model would be "cheaper and smaller than the most recent iPhone." The new model is described as being one-third smaller than current models. The phone is not the only thing getting smaller -- Apple is looking to drop the price and customer commitment too.Bloomberg says that Apple wants to sell the new model for $200 without requiring the user sign a contract. Typically, wireless carriers require customers sign a two-year or sometimes a three-year contract in order to get a discount on a phone.Reiterating rumors that have been around for some time, the report also says that Apple is working on a dual-mode iPhone that would work with GSM and CDMA networks. Verizon Wireless began selling the iPhone 4 today. Analysts are predicting that the carrier could sell about 8 million iPhones in 2011.
