Is a less expensive iPhone prototype around the corner?

Apple Inc has a less expensive iPhone in the pipeline, as it is now getting more competition from cheaper range of smartphones, sources reported.The new iPhone which is being worked upon will be one third the size of the iPhone 4, sources informed, which iPhone is planning to sell for $200 but the two year wireless contract will be missing.The launch of this phone is very dicey this year, as speculations are rife that it may get unveiled in the middle of this year or it may get cancelled altogether.

Apple has a history of developing products and then eventually not bringing them into the markets.

The manufacturer of the iPad and iPhone though did not confirm its status on the new iPhone, sources stated.

Apple reportedly is also in the process of developing a dual mode phone which shall be able to work with the world’s two main wireless standards.

If Apple brings in a cheaper iPhone prototype it will have chances of capturing a lower level of market segment, giving an impetus to their present giant status.