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NYTimes: Apple Is NOT Working on a Smaller iPhone

Over the last few weeks, rumors about the possibility of a smaller iPhone model continued to make their rounds in the tech world. According to a new report in the New York Times, however, Apple is “not currently developing a smaller iPhone.” Instead, the New York Times’ Miguel Helft and Nick Bilton report, Apple’s engineers are putting the final touches on the next version of the iPhone.

The reporters cite “people briefed on Apple’s plans” who argue that a smaller iPhone wouldn’t necessarily be cheaper to manufacture and would likely be harder to use. These sources also told the New York Times that a smaller iPhone with a smaller screen size would force developers to rewrite their apps.

Instead of making a smaller, cheaper model, Apple will likely just continue with its current strategy of selling last year’s model at a discounted price. In the U.S., AT&T is currently selling the iPhone 3GS for $49.

While it panned the iPhone nano rumors, the New York Times’ sources did corroborate earlier rumors of a cheaper, more flexible version of MobileMe. Apple hasn’t been able to really make the current version a hit. Indeed, an anonymous Apple retail employee told Popular Mechanics earlier today that MobileMe is “really hard to sell. Nobody ever sells it.” The new version, according to these sources, will be free and will “allow users to synch their files without using a cable.”

In general, Helft and Bilton have been quite dependable when it comes to Apple rumors and the arguments put forth by their sources make a lot of sense. As usual, we won’t know anything for sure until Apple actually makes its announcement, though.

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