WSJ Says Smaller iPhone and Free MobileMe “Locker” Service Coming

Just a couple of days ago, the Internet began going bonkers at the idea of a new smaller and cheaper iPhone. That report came from Bloomberg, but now another acclaimed news outlet, the Wall Street Journal is reporting the same thing. Apple can't really expect us to ignore the possibility of such a device if two major sources are making the same claim can it?

The Wall Street Journal is going further by saying that one of its sources who saw the prototype of a smaller iPhone last year, described the device as being "significantly lighter than the iPhone 4" and having an "edge-to-edge screen that could be manipulated by touch as well as a virtual keyboard and voice-based recognition." For many buttonless-iPod Shuffle owners, that last bit about voice-based recognition will bring back bitter memories.

In addition, the WSJ is reporting that Apple is working on overhauling its cloud-based MobileMe storage service, suggesting the Cupertion-based company is playing with the idea of scrapping the current $99 subscription fee in favor of a free service. The WSJ describes a "locker" that is used for storing "personal memorabilia such as photos, music and videos, eliminating the need for devices to carry a lot of memory." With the AppleTV already using a streaming-only route, an iPhone that does the same wouldn't be unthinkable. We're just wondering how many people would actually want their media streamed instead of stored locally — I know I wouldn't.

Apple cultists will notice that the author of the WSJ story is none other than Yukari Iwatani Kane — a WSJ who has notoriously been accurate about predicting Apple products long before they are announced and launched. With that said, we wouldn't be surprised if Apple suddenly drops a new iPhone Nano in the next few months or even weeks.

Via Wall Street Journal

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