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The New York Times has a report today on the various rumours and stories that have been buzzing around this week about the possibility of Apple bringing out a cheaper and smaller iPhone. The New York Times says that it has been informed by a source who is aware of Apples plans that Apple is not currently working on, or planning to launch, a smaller iPhone. Apparently the codename supposedly given for the new phone, N97, was actually for the Verizon iPhone 4. According to the source, Apples engineers are at the moment concentrating on finishing the next version of the iPhone, which will be very similar in size to the iPhone 4.
The Times also spoke to another source who said that one of the reasons Apple is not planning to make a smaller iPhone is because it would be more difficult to use, and would not necessarily be any cheaper to make. Also, a smaller screen would mean that developers would have to rewrite their apps, which is not something Apple wants.
So, thats what Apple isnt doing, now onto what it is doing! The NYTs source says that Apple is working on making it easier to operate the iPhone by using voice commands, in order to attract more customers, specifically those who dont like using virtual keyboards. And, as has been widely reported, Apple is also looking into changing the internal workings of the iPhone to lower costs.
The Times story also appears to confirm recent talk that Apple is planning to greatly expand MobileMe, and that it will be free. The aim, apparently, is to have the user be able to effortlessly sync all their photos and media content across all of their Apple devices. And yes, one of the factors driving the idea is that Apple can then make devices which have less need for storage, and would therefore be cheaper for the consumer to buy.
Source: The New York Times, via MacRumors