Bloomberg reported that to tackle the threat from Google Android devices and the upcoming Nokia WP7 smartphones, iPad maker Apple Inc has been working on a new iPhone which will be smaller and cheaper that the current iPhone 4.
Citing "people who have been briefed on the plans," Bloomberg reported that Apple is also planning to develop a technology that makes it easier to use the iPhone on multiple wireless networks. Apple has the plans to widen the iPhone market by slashing its price. iphones, currently the most popular smartphone in US market, has not yet grabbed much acceptance in Asian and some European countries due to its huge price.
Apple is planning to hit the cheaper iPhones to Asian and European markets that are dominated by Nokia Symbian devices. Android devices also grabbed a substantial market share. In the global smartphone market, Android-based devices shipped twice as many units in the fourth quarter of 2010 as were shipped with iOS.
The cheaper iPhones will be an appealing factor in India and China, that are considered as two largest handset market in the world. Nokia dominates these markets with their mid-range smartphones. The alliance between Nokia and Microsoft will also affect the sale of iPhones, as the both companies have potential to become the champions in their fields. Nokia can make low and mid-range smartphones and at the same time Microsoft has the ability to to create an ecosystem similar to Android"s and Apple"s.
The Bloomberg report also added that the new smaller iPhone will be launched in the mid of 2011. The prototype of new iPhone is about one-third smaller than the iPhone 4 and lacks a 'Home' button.
As the competition increases in the smartphone market, the ultimate winner will be the common man. Let the market grow more competitive and let's wait more low-cost smartphones, obviously, Smaller & Cheaper iPhone. Stay tuned for more updates.