New York Times dismisses rumors of iPhone nano while Confirming that Apple is working on a Cheaper iPhone model

The New York Times has dismissed rumors that Apple is working on a iPhone nano. According to the NY Times, Apple is considering a cheaper iPhone however, a smaller iPhone model is not on the cards right now.

Apple has been exploring ways to broaden the appeal of the iPhone by making the popular device less expensive and allowing users to control it with voice commands.
But contrary to published reports, Apple is not currently developing a smaller iPhone, according to people briefed on Apple’s plans who requested anonymity because the plans are confidential.
Another person who is in direct contact with Apple also said that the company would not make a smaller iPhone at this time, in part because a smaller device would not necessarily be much cheaper to manufacture and because it would be more difficult to operate.
More important, a phone with a smaller screen would force many developers to rewrite their apps, which Apple wants to avoid, the person said.

In their view, Apple is currently focusing on launching a new iPhone model this summer.

Apple’s engineers are currently focused on finishing the next version of the iPhone, which is likely to be similar in size to the current iPhone 4, said one of the people.
Analysts expect the new iPhone to be ready this summer.

The report also adds that Apple’s MobileMe service is likely going to be offered free of charge so as to compete with similar free services that are being offered by Google and Microsoft.

Another person with knowledge of Apple’s plans said that the company was actively building a more versatile version of its MobileMe service, which allows users to store music, photos and files online and have them accessible on all their devices.
The current version of MobileMe, which costs $100 a year, has failed to catch on with consumers. Rivals like Google and others offer similar services free.
The new version of MobileMe is expected to be free and would allow users to synch their files without using a cable.

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