The next iPhone 5 is expected to be faster and a world phone. It will be again another high-end smartphone clashing with the top of the Android range. Now Bloomberg reports that Apple is also working on new iPhone models that are cheaper and attacking the low-end of the smartphone market.
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One of the budget iPhones would be smaller than the current iPhone. 2007 iPhone nano rumor is reborn!
Of course cheap iPhones would be another threat to Nokia. Nokia is supposed to announce its future plans. A partnership with Microsoft is seen likely.
The new budget iPhone would be using technology from former iPhones. I assume from the 3G or 3GS to keep cost down. For some weird reason the home button would be gone from the small iPhone. We had this discussion before. Apple would sell the budget iPhone unlocked for under $200. This iPhone would carriers not make too happy though. That could be a reason Apple is not going forward with it.
A new small iPhone would also maybe directly compete with the HP Veer. Since the rise of the apps, I am not that fond anymore of a small iPhone nano. The killer iPhone needs the same screen-size as today's iPhone. The apps are a major attraction of the iPhone. A small screen device would be limiting. An unlocked iPhone for $200 that is offering iPhone 3G or better 3GS performance would be rather disruptive.