iPhone Nano 2011 with talk of me Mobile Me

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iPhone Nano 2011 with talk of me MobileMe. Apple is working on a smaller, cheaper iPhone insists the Wall Street Journal, as well as a "major revamp" of MobileMe that would see the cloud based synchronization service add a digital media "locker" and drop its annual $99 price tag.

Sunday Journal story comes on the heels of a similar piece from Bloom Bergs News. Which claimed that Apple was hard at work on a new iPhone that would be a third smaller than the iPhone 4, with older components and a lower, potentially no contract sticker price.

The new article in the Journal which, many suspect. Apple's newspaper of choice when it comes to strategic leaks) takes Bloom berg's bet and raises it, reporting that the new iPhone is only half the size of the iPhone 4, with an "edge-to-edge" touchscreen and "voice-based navigation."

Code named "N97" a none-too-subtle jab at the hulking nokia N97 from a couple of years back perhaps. The new iPhone would be "significantly lighter" than the current version, according to the Journal, and it would cost mobile operators half as much meaning carriers might go ahead and offer it for free, albeit with a two year contract.



The Journal story makes no mention of a couple of key details from last week's Bloom berg report, that the new iPhone might sell for $200 without a contract, and arrive with universal SIM technology that would let consumers pick a carrier themselves.

But the Journal goes on to revive another old rumor that apple. Which of course, refused to comment on the latest rumors is poised to relaunch its $99 a year MobileMe service as a free digital "locker" for iTunes music libraries, videos, and photos.

Word has it that Apple is still wrangling with the big music labels over licensing rights to stream their music, and indeed, the Journal says those talks are still underway. o, if you weren't keen on the idea of an iPhone a third smaller than the original with a $200, no-contract price tag, what would you say to a half-size iPhone for free but with a two-year contract. And what if it came with a free digital media locker in the bargain? Enticing, or simply more of the same, only in a smaller package.