Get ready for a smaller and cheaper iPhone from apple

 

Apple Inc is working on development of a less expensive version of iPhone which might be half the size of popular iPhone 4. According to The Wall Street Journal, Apple is working on the first of a new line of less-expensive iPhones, while simultaneously undertaking an overhaul of applications for the devices, to accelerate sales of its smart phones amid growing competition.

The new phone with code name of N97 – is tipped to be significantly lighter and about half the size of the current iPhone 4 and would be available to carriers at about half the price of the normal iPhones . Currently Apple sells iPhones to carriers for $625 each on average. With carrier subsidies, consumers can buy iPhones for as little as $199 with a two-year contract.

iPhones are critical for Apple and generated 39 per cent of the company’s $26.7 billion revenue in the latest quarter. As per analysts, iPhone sales are expected to grow by 7 million to 13 million units this year, as Apple began sales of the iPhone 4 through another operator, Verizon Wireless, last week. The company sold 16.24 million iPhones in the quarter ended December 31, 2010.