The rumor about a brand new version of the iPhone - a smaller and less expensive one - has circulated the world with the speed of light. But it is ever more credible now as the Wall Street Journal confirmed the rumor quoting a source close to the matter. The new version of Apple's iPhone will have roughly half the price and half the size of the original iPhone. Yes, you heard it right – this could mean almost a full subsidy from carriers as currently the iPhone 4 is sold to carriers for an average of $625.
The redesigned iPhone is to be sold along the traditional iPhones this summer, but its timing is not yet final and could change. It has been spotted with an edge-to-edge screen and significantly lighter than the iPhone 4. The handset can be controlled by touch as well as by a virtual keyboard and voice. It comes as no surprise that the iPhone 4 was also said to be upgraded.
The source also went on to say that the new line of iPhones is among the top priorities of CEO Steve Jobs, who has kept himself involved in the development process. Will this be enough to respond to a surge of Android handsets storming MWC? Time will tell, but Apple is pushing other fronts as well. The company is considering to transform its MobileMe cloud storage service into a free one. Currently, MobileMe costs $99 a year. The service is important as it could become the core of a new music service that Apple reportedly has in its plans. The best thing about it would be the possibility to have your iTunes tracks synced at all times wirelessly, without the need to manually sync through a cable. The service might roll out as soon as June, so stay tuned. Another key point for Apple is social networking, but there were no details on what exactly will Cupertino change in that aspect.
source: Wall Street Journal