Apple Producing iPhone Nano Code Named N97

Apple is producing a new smaller iPhone code named N97 with smaller size and diminished capabilities for a much lower price, according to a report in the Wall Street Journal. Some are calling this an iPhone Nano, which could be a possible moniker for such a new phone. The Journal report cites someone who claims to have seen a prototype of the new iPhone. It was half as big and had an edge-to-edge screen.

Carriers will be able to purchase the new iPhone from Apple at about half of what current iPhones cost. Currently the full price for a 16GB iPhone is just over $600 while carriers subsidize the cost to buyers allowing them to purchase the phone at $199.

If the new smaller iPhone was around $300 the carriers might choose to offer them at a drastically reduced price, or even free, since iPhone users often carry much higher bills than other phone customers. An iPhone monthly bill usually adds a premium data package and text message service.

This is not a new rumor, as you can see from the image which was part of an article on Mac Appstorm two years ago. The rumor has been around almost since the iPhone was introduced. But today there are good reasons why it could be true this time around.

As the Journal says, phone competition is stronger today with Android and a refreshed version of Windows Phone released last year now hitting Nokia. Apple may need to offer another version of the phone to compete at lower price points to increase sales.

The new iPhone could come this summer in June when most people expect to see a new version of the regular sized iPhone.