Apple is working on a smaller, more affordable iPhone model aimed at narrowing the price gap between the iPhone and cheaper models running Android. Citing a person who has seen a prototype of the phone, Bloomberg reports that the new model would be roughly one-third smaller than the iPhone 4. The report also states Apple has considered selling the new model at $200 off-contract, which could allow some carriers to offer it for free, and has also aimed to unveil the new iPhone near mid-year, while noting that the introduction could be delayed or scrapped. In addition, it notes that Apple is working on a dual-mode iPhone which would work on both GSM and CDMA networks, as well as a technology called Universal SIM that would allow users to switch between carriers using software as opposed to needing to swap physical SIM cards.
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