Apple Working on Cheaper iPhones, Keeping the Size the Same: Report

Cheaper iPhones, yes. Smaller iPhones, no.

After reports citing anonymous sources began to surface this week that Apple was developing a smaller, cheaper iPhonee to expand its mobile market share, the New York Times cites some anonymous sources of its own to kibosh the rumors.

Several unnamed sources with ties to Apple tell the paper that the Cupertino-based company is indeed working on ways to make the next generation of iPhones cheaper but not by making it smaller.

They cite smaller iPhones as being too difficult to navigate with a touchscreen and Apple not wanting to force app developers to redesign their apps for a different sized screen as reasons why the iPhone won't get smaller.

But with Android devices combining to outsell the iPhone, Apple is keen on the need to do something to get more of its smartphones in more peoples' hands.

Apple is reportedly looking to change the internals of the next generation iPhones to cut costs and it is looking to make the phone more voice command friendly, so users can control the iPhone without having to touch the screen.

The next generation iPhone could also have better cloud service, with Apple reportedly improving its MobileMe service and eliminating the $100 annual fee.

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