If the latest rumours are to be believed, Apple may well be splitting its popular iPhone line into two separate tracks: the traditional iPhone, and a new so-called "iPhone Nano." Rumoured to be half the size of the current iPhone, this iPhone Nano may take advantage of cloud-based storage using Apple's MobileMe service and come in at a significantly lower price point.
For reference, Apple's current iPhone 4 model sells in the United States for between US$200 and $300 with a two-year service contract. Without a contract, those models cost US$400 and $500 respectively, which is a significant investment for a mobile phone. Rumours of the iPhone Nano from sources such as CNN speculate that the phone may be offered for US$200 without a service agreement. This lower, entry-level price point is sure to draw many new users into the iPhone market, especially those who have previously opted for Android-based handsets on account of their lower cost and more diverse handset features, such as physical keyboards.
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