Apple is working on a cheap version of the iPhone

Apple is working on new versions of the smartphone iPhone, which have to compete with budget versions of the devices based on Google Android. One of the newest version of the iPhone will be smaller and cheaper than the existing iPhone, and furthermore, the company working on a version of the smartphone that will be intended for use in different networks.

Since Apple does not officially confirmed this information by referring to the closed nature of the work. However, sources from Apple said that CEO Steve Jobs, who is on sick leave, shall continue to take all strategic company decisions, including those related to the development of new devices. Earlier in private conversations with other executives of the company he had expressed confidence that Apple should narrow the price gap between its smartphone and inexpensive smartphones based on Android, which are becoming increasingly popular among consumers.

According to research firm Canalys, overall market share of Apple’s smartphone market worldwide has dropped to 16%, while Google’s share grew only by more than tripled – to 32.9 percent.

Now the company is discussing the creation and marketing of a new version of the iPhone, worth about $200 without a traditional user service contract. Approximately the same price many Western operators sell devices with Android, but they are sold with a contract for which consumers pay the early termination penalty.

According to sources familiar with the plans of Apple, the company will present an updated version of the phone around the middle of the year, but the final decision on this issue is still not so that it exits the market may be delayed, and possibly of concern to quitting it. Workers with long experience at Apple confirmed that the company often worked on projects that have never seen light.

As for the new smartphone, the iPhone compact is expected to be around a third cheaper than current devices. That will be possible thanks to the fact that new devices will use existing components today and will be created based on the latest chips at the heart of future generations of the iPhone.

The company is also working on a new generation of dual-mode phones operating at the same time in GSM and CDMA networks, which are not technically compatible with each other. Finally, sources confirmed that the company is working on technology Universal SIM, which will allow iPhone owners to switch between GSM-networks, without changing the SIM-card connected to a phone number.

The company said that technology on one hand, will increase revenue from sales of the iPhone and on the other will allow operators to handle the leakage of subscribers.

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