Apple ‘working on cheaper iPhones’

With concerns about the recent leap in adoption of Android-based handsets by consumers, Apple is looking to produce cheaper and more versatile iPhones, it has been claimed.

Bloomberg reports that Apple is working on a cheaper and smaller version of its iconic device, which according to sources is already at the prototype stage.

The report also claims that Apple is working on developing technology that makes it easier to work on multiple networks, presumably a CDMA/GSM hybrid. The Verizon iPhone, launched this week, has a chipset that is capable of supporting both standards, it has been revealed.

Recent figures from analyst firm Canalys show that Google’s Android OS is rapidly grabbing marketshare in the smartphone space, and is now the best-selling mobile OS.

Other reports from IDC, comScore and Gartner all agree that Android is the hot property in the smartphone market at the moment.

According to the report, one model that Apple is working on is around a third smaller than current iPhone models and has no Home button, something that has been mentioned before by the fifth-generation iPhone rumour mill. It may be launched in the summer, perhaps alongside the iPhone 5. However, the source also claimed that the plans could be dropped altogether.

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