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iPhone's 'Nano' rumored as strategic response to low-cost Android phone

14 February 2011 , Written by Dhruv Tanwar
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Apple is said to be readying a smaller and cheaper version of its successful iPhone, as reported by Bloomberg and The Wall Street Journal.

Bloomberg's article from a couple of days ago spoke of the move being a preemptive strategic plan to stem Google's Android's Business_competitioneventual penetration of the lower tiers of the market by lowering prices and widening its appeal. Reports said the possible price point that would be Apple's target could be around $200, either subsidized by the carriers or marketed independently of the telecommunications companies.

If true, the speculated move would be inline with Apple's similar strategies with the iPod and the iPod Nano, and with Apple TV where it cut prices from $299 to $99 by dropping the device's internal hard drive in favor of memory that supports streaming. The Wall Street Journal's article noted that the move could possibly be similar for the iPhone, which may just feature lesser on-board memory but possess the ability to hook into Apple's MobileMe service for cloud based features. The phone is said to be two-thirds the size of the current product.
 

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