San Francisco – Contrary to reports earlier this week in The
Wall Street Journal and other outlets, Apple (NASD: AAPL) is not developing a smaller
iPhone, although the company is working on making the smartphone cheaper, The
New York Times reported, citing "people briefed on Apple’s plans."

One source told The Times "Apple was not planning to introduce a smaller
iPhone any time soon," while another noted a smaller iPhone could
potentially be more difficult to operate, and force developers to alter their
apps for a smaller screen.

The Times additionally reports that Apple is working
on improving voice navigation, and changing out parts in a bid to lower costs.

The Times’ sources also confirmed earlier reporting that Apple is looking to
re-vamp its MobileMe service, potentially allowing users to store photos and
other media in the cloud.


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(DMW previous coverage)