Bloomberg is reporting that, according to unnamed sources, Apple is working on a smaller iPhone model (iPhone Nano, anyone?) to help close the pricing gap between lower end Android devices and Apple's flagship iPhone product. The move would let consumers pick up an iPhone Nano for around $200 non-subsidized and without a carrier contract:
One version would be cheaper and smaller than the most recent iPhone [...] Apple has considered selling the new iPhone for about $200, without obligating users to sign a two-year service contract.
We previously speculated that Apple would do well by releasing a smaller iPhone to help fend off the never-ending flow of cheap Android smartphones. Apple would be able to sell the device without a contract because the costs to build it would be very low compared to the current iPhone 4 or future iPhone 5. The sources told Bloomberg that Apple is aiming to unveil the device around mid-year, but that plans could still be scrapped depending on how things play out.
Another interesting tidbit was that Apple is working on a technology called Universal SIM which would let users jump from network to network without switching out their SIM card. The SIM would be compatible with both GSM and CDMA networks and would work well in a carrier-free iPhone Nano, giving more freedom of choice between networks for the user.
So how about it, would you be interested in picking up a contract-free iPhone Nano now that we know Apple is actually working on one? Let us know in the comments!