Latest Mobile Technology News: Is Cheaper iPhone a Good Bet for Apple?

Monday, February 21, 2011

Is Cheaper iPhone a Good Bet for Apple?

Apple Inc. (AAPL) is expected to release a new cheaper version of the iPhone during 2011 to deal with growing smartphone competition. Apple may be working on a new low-end line of iPhones along with the existing line for about half the price of the standard iPhone line, according to various media reports.

The new device would get software service overhauls and would be about half the size of the iPhone 4, which would put the device more in-line with other mass-market phones, the Wall Street Journal said in a recent report.

Cupertino, California-based Apple primarily competes with Research in Motion Ltd. (RIMM), Motorola Mobility Holdings Inc. (MMI), and Nokia Corporation (NOK) in the mobile phone market.

Google Inc.'s (GOOG) Android OS-based smartphones have seen tremendous adoption growth over the past year, and the recent partnership between Nokia and Microsoft (MSFT) could pose another long-term threat to Apple.

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