Smaller, cheaper iPhone may be on the cards

A SMALLER version of the iPhone is reportedly in the pipeline and could be set for release by the summer.

Reports in the US say the new model will be between half and a third of the size of the current iPhone. It will also reportedly be about half the price, and with its MobileMe service included free as a "locker" for photos, videos and maybe music.

Apple has not commented on the reports.

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