According to the well-informed Wall Street Journal Apple is currently working on an iPhone that is half the size of the iPhone 4 and a major MobileMe overhaul for release this summer. The report is following up on Bloomberg’s report about a smaller iPhone but adds some new details such as the device’s “N97” codename and size.
The WSJ also claims the new, smaller iPhone will be available “at about half the price of Apple’s main line of iPhones.” The smaller iPhone is said to be sold alongside Apple’s main line of phones so maybe this summer’s lineup will be the iPhone 5 at $199/$299, iPhone 4 at $99 and iPhone nano at $49.
The report also claims Apple is “exploring a major overhaul of its MobileMe online storage service.” MobileMe is said to become a free “locker” for all of your personal media like photos and videos. This would allow Apple to provide less physical storage on their mobile devices and pull all your media from the cloud.
Perhaps this is Apple’s North Carolina data center’s true purpose in life. The report also claims MobileMe could tie into Apple’s rumored cloud-based music service. Steve Jobs said in a customer email that MobileMe would get a lot better this year.
On a final note, the report claims that both products are tracking summer 2011 launches (probably a WWDC launch) and Steve Jobs has made them his top priority. There will possibly more details about this story, so be sure to check back later today for updates.
Update: The WSJ has updated their report to include some new, specific information about the new, smaller iPhone. According to the report’s sources this new iPhone will be lighter and will have an “edge-to-edge” screen (no home button?!), and wait for it… have voice-based navigation. They also claim the new MobileMe revamp was due for release last year and will allow users to stream their iTunes libraries to their phones so they won’t need to actually sync through the iTunes desktop application. The report also says Apple is working on an update to their main iPhone (iPhone 4) and Steve Jobs declined to comment via email.