Report: Apple making cheaper iPhone to fight Google

Apple is reportedly getting ready to take on Android phones with a smaller, cheaper iPhone that does not require a contract.

Apple is reportedly working on a new line of iPhones, specifically tailored to take on cheaper phones using Google's Android.

Verizon

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.

Featured Video
6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

The problem with hoarding photos on your phone

Do you have hundreds (or thousands) of photos on your phone? This one's for you.

by Sharon Profis