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Apple Working on Smaller, Cheaper iPhones?

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    CORAL GABLES, FL - FEBRUARY 10: Julie Bennink makes a phone call on her new iPhone that she had just purchased at a Verizon Wireless stores after they started selling the smart phone on February 10, 2011 in Coral Gables, Florida. AT&T had previously had a monopoly on selling the iPhone since 2007. (Photo by Joe Raedle/Getty Images)

    According to a new report, Apple is working on new smaller, cheaper iPhones to help combat the growing scourge of Android phones.

    The new phones would be about two-thirds of the size of the iPhone 4 and would cost $200 without a contract. Compare that to $200-300 for current iPhones with a two-year contract; it's a pretty big difference.

    Of course, the question remains: what's the point of an iPhone that small? It doesn't make a lot of sense to me, but I guess time will tell.

    Via Bloomberg

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