This week one appeared Bell which indicates that Apple is working on a new, smaller and cheaper iPhone model that will be used as a "weapon" to stop the growth of the Android platform. Wall Street Journal confirm this rumor with independent sources, but slightly modify the substance of the information. According to the publication, Apple is working on a new iPhone mini model that will be only half the size of a normal iPhone and will be available at half the price in stores. This device has the code name N97, it should be available from the summer to mobile phone operators and will generate record revenues for Apple considering the rather low price at which it will be sold.
One of the people, who saw a prototype of a new iPhone several months ago, said the new device is intended to be sold alongside the current line of iPhones and would be about half the size of the iPhone 4. The phone, one of its codenames is N97, would be available to mobile carriers at about half the price of Apple's main line of iPhones, the person said.
In addition to the new iPhone model, Apple intends to offer MobileMe for free to all its customers, with the idea of giving users the opportunity to save their photos, movies/etc on Apple's servers for free and to have access to them at any time simply and easily. According to those from the Wall Street Journal, this strategy was thought to eliminate the need to increase the memory of the terminals, but also to contribute to the development of an audio streaming system using MobileMe. Apparently Steve Jobs would be actively involved in this project, although he is now "away" on medical leave and Tim Cook has taken over his position.
Apple is also exploring a major overhaul of its MobileMe online storage service, the people familiar with the matter said. The service currently requires an annual subscription payment of $99 to $149. Apple is considering making Mobile Me a free service that would serve as a "locker" for personal memorabilia like photos and videos, eliminating the need for consumers' devices to carry a lot of memory, the people familiar with the situation said. MobileMe could become a focal point for an online music service that Apple has been developing for more than a year, the people said.
This strategy could prove extremely profitable for Apple because it would mean accessing new segments of the market where iPhone terminals did not attract customers due to the high price. MobileMe is one of the services that many Apple customers would like to have, so turning it into a free service accessible natively from iOS would be a big step forward for the company.
Of course, for now we are talking about rumors, but they would be smart moves on the part of the company, especially since there is now such a wide range of options regarding smartphones and tablets.
