Now, the New York Times claims its "sources close to blah blah" says that's not true.
It says the company believes a smaller phone would be too difficult to operate:
Instead, it says its "sources close blah blah" say Apple is planning to develop its subscription MobileMe service which allows users to store music, photos and files on-line. At the moment, it costs £59/$99 a year and Apple could make it free.... 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. 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. The person said Apple was not planning to introduce a smaller iPhone any time soon. Analysts expect the new iPhone to be ready this summer.
This has been speculated for some time. Google already offers a similar free service and it would mean iPhones of the future needn't have large in-built storage capabilities. This in turn could make iPhones cheaper to buy. The storage chip is one of the most expensive components in the device.
(Via: NYT)
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