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Report: Apple developing Nano iPhone


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Apple may fight Android for market share with Nano iPhone

Apple is reportedly working on two new handsets; a low cost iPhone and a dual version of the handset available without a contract.

According to the report in Bloomberg people familiar with the projects said that the first handset is a cut-down version of the iPhone, which will cost around $200 and be available without a data contract.

The prototype seen by the source was around a third of the size of the current iPhone, lacks a Home button and uses less advanced components than the top range phones. It is aimed at the middle of the market where Android is increasingly dominant.

This would not be the first time Apple has targeted the mass market in this way. The iPod Nano line and Mac Mini are both steady sellers and an iPhone Nano would allow Apple to extend its market share with little R&D expenditure.

“Instead of targeting 25 percent of the global mobile- phone market, Apple would be going after 100 percent,” said Charlie Wolf, an analyst at Needham & Co.

Apple is also working on a dual-band version of the phone, which is capable of being used on GSM and CDMA networks, although this may not be included in the low-end iPhone.

Universal SIM card technology is also under development to back up the new handsets. These could allow a handset to be automatically switched between 3G carriers if the user wants to switch contracts.

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