Could Apple be secretly developing a new smaller cheaper iPhone to compete on the world stage? The rumor mill is churning thanks to a recent study posted by Bloomberg Reports which states Apple may indeed be developing a smaller cheaper iPhone. The new iPhone is rumored to be priced around $200 unlocked and could be released as soon as the middle of 2011.

This would be a drastic move for Apple as they’re marketing strategy has always been to release expensive devices that are only attainable by the richest of folks. Releasing a cheaper iPhone would drastically change their image and long term could hurt their whole brand marketing strategy. We recently released an article title Why Apple should be Afraid of Android in which we stated our opinion that Apple could lose their coveted top position atop the smart phone market place. Apple fans aggressively defended Apple to the death in the comments section ripping apart our author Darcy at every point they could.

The emerging markets demand a more affordable unlocked phone and Apple may now realize this fact and are adjusting to market conditions. I think that Apple will have to release such a phone in order to continue their dominant growth and earnings.

This new model is only in the prototype phase, warns Bloomberg, and it could still be scrapped.

Additionally, Apple is trying to develop technology to allow people to use their iPhones on different carriers, according to Bloomberg. Apple wants to make it so you don’t have to change your SIM card to jump from carrier to carrier. New Apple software would help make switching easier.

What’s your take on this news? Do you think this new iPhone might tarnish Apples high end status symbol? Do you think Apple will actually release such a phone?

  • When you have the words iSuck plastered all over your article, that may strike a chord in some Apple fans. So I’m not blaming them in that case.

    As far as Apple coming out with a cheaper device, I’ll believe it when I see it. $200 smartphones are the norm in this here parts, and Apple does not do anything to cannibalize sales of their other devices. Besides, Apple already has lower priced iPhones. They are the previous gen and refurbished models.

  • d1

    Tried rooting my galaxy s3 following the steps above, on getting to the PDA SECTION ON THE ODIN, i could not locate the boot-insecure-xxale8-cwmtouch-gsm.tar file from the toolkit folder……. now am stock, what do i do now?
    and besides the version on s3 is xxale9 what difference does this mean wrt xxale8?

  • qkiller

    This process seems to have bricked my phone temporarily, not simple as it would suggest at all, I just wish I allocated more time to work on this. after installing the drivers, choosing option 7 and getting a green pass from odin, the phone doesn’t boot.

    • Aaron

      Have you found a solution to this?

    • vanishin

      Same here

    • Gee

      I finally fixed mine. Took about an hour. Use odein and an old nand recovery or download this one like i did…..(tmobile) 1. Hold volume down, home, and power for 5 seconds, nothing should happen at this step. 2. Release power and home only. Should get a vibrate black screen at this point. 3. Should bring you to the download warning screen and push volume up to begin download mode. 4 start odin and use the pda button to select the .md5 from the downloaded zip. Hope this works for you as it did for me. The download is huge btw. 670mb And should take 8 minutes to install through odin give or take. Hit me if you get stuck. SG3 t mobile

      • vanishin

        Thanks so much for the link, I just fixed mine also!

  • Any Toolkit coming for the US variant SGH-I747 (AT&T)?

  • David Gray

    Wow! I JUST read this article thinking it was something NEW and up to date and then I read the date of the article, FEB 2011?!?!?!?! Are you kidding me! Why the hell is this article even UP on any of your main pages??? Not only is it old as CRAP but it’s completely INCORRECT! Apple did NOT come out with a smaller, cheaper iPhone so why didn’t you remove your completely wrong article after you realized that? Man, Android Authority is slipp’n!