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Apple Makes Cheaper iPhone

In what would be a double win for mobile marketers, sources tell the The New York Times that Apple is considering a cheaper iPhone -- which would make the devices more readily available -- but not a smaller, and likely less ad-friendly, version. "More important, a phone with a smaller screen would force many developers to rewrite their apps, which Apple wants to avoid," The Times explains.

Contrary to earlier press reports, "A senior Apple executive ... recently said during a private meeting ... it would not make multiple iPhone models, instead it would continue to drop the price of its existing models," The Next Web notes. While a boon for marketers, however, Apple's real motivation for making iPhones more accessible is slowing the rise of Google's Android, which has emerged as a top mobile operating system thanks to its wide availability on a range of cheaper devices.

"This shows that Apple is getting scared of Android," Business Insider writes. "Going for cheap and mass volume is out of character for Apple. But Steve Jobs probably remembers the '80s well, when there was another platform war, and remembers that whichever platform attracts the most consumers and developers eventually wins."

What's more, "According to analysts, a cheaper iPhone, especially one that does not require carrier subsidies, is critical to Apple's continued growth overseas," according to Apple Insider. Meanwhile, Apple is also reportedly hard at work on a free version of its MobileMe service, which allows users to store music, photos and files online and accessible via any devices. As The Times notes, The current version of MobileMe, which costs $100 a year, has failed to catch on with consumers."

"Free, cloud-based storage might allow Apple to sell cheaper iPhones with less storage," writes Yahoo News. "It's an idea that may look good on paper, but sounds less promising once you consider carrier bandwidth caps, not to mention the fact that MobileMe streaming won't do you much good without a decent data connection."

Read the whole story at The New York Times »

1 comment about "Apple Makes Cheaper iPhone".
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  1. Wendy Jameson from ColnaTec, February 18, 2011 at 1:38 p.m.

    Please please please make MobileMe free!!

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