Cheaper, Smaller iPhone May Be In Works

Cheaper, Smaller iPhone May Be In Works

If you like the iPhone but can't swing the purchase price, you might not have to wait long for a cheaper alternative.

AppleInsider is reporting that Apple has a second iPhone in the works for later this year that won't be quite as capable as the one currently out in the wild, but that will cost less and resemble the iPod Nano. The site based its report on the word of "extremely reputable sources" that declined to be named, presumably for fear of losing their jobs.

This rumor cropped up last week with the back-and-forth between financial analysts from JPMorgan Chase in Taiwan and New York. Kevin Chang had issued a report similiar to the one posted by AppleInsider Thursday, claiming that Apple had a cheaper iPhone in the works that incorporated a number of new interface technologies, such as a touchscreen click-wheel similar to the iPod interface. But his colleagues in New York expressed skepticism at that notion, figuring that Apple would add technologies like 3G data networking before overhauling the user interface on a brand new product.

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