Apple is reportedly working on a new line of iPhones that are less-expensive to make. In order to compete with cheaper devices offered by other companies, this new handset from Apple would be about half the size of the iPhone 4 and will exist alongside other versions of the iPhone at retail and not replace them.
The new phone, code-named N97, would be about half the cost of current iPhones, allowing carriers to subsidize the price more, whereas an iPhone is currently sold to carriers for about $625, and contracts let carriers sell them at as little as $199.
Source: Wall Street Journal
