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Apple Working on Smaller, Cheaper iPhone; Low End Model Coming Soon?

Apple could be working on a smaller and cheaper iPhone model, especially now that Android’s growth has exploded and they’ve taken over the smartphone segment, also aiming at the low end one. An unnamed source claims that a new prototype is already going around, one third smaller than the iPhone 4 and lacking a home button.

Supposedly, Apple will sell this device without a contract, for $200, making it appealing to the masses. Meanwhile, Google’s global smartphone market share has reached 32.9% in Q4, much more than Apple’s 16%, so the Cupertino juggernaut must do something. Keep in mind that this mysterious “iPhone nano” could be scraped, as have many Apple projects in the past.

The low price point iPhone model is also supposed to be a dual mode handset, working on both CDMA and GSM. Apple is working on something called “universal SIM technology”, allowing the user to pick GSM networks, without switching SIM cards. Now let’s see if MWC 2011 means enough to the Americans to be worth an iPhone nano announcement…